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US Metal Enclosures Market

US Metal Enclosures Market: Are Your Spend Management Goals Attuned to the Current Market Trends?

In the backdrop of a tumultuous US healthcare industry, the medical devices sector in the US is raging towards a double-digit consumer spend mark. Such a rapid increase in the spend is paving the way for the advent and sustenance of markets such as the US metal enclosures market, which is now making its mark in the business landscape in the US. Currently, the US metal enclosures market is set to achieve a spend growth rate of more than 4%. However, a key question that comes to mind is whether this spend growth rate translates into a favorable procurement scenario for buyers looking to procure such products? Inferences drawn from SpendEdge’s recent US metal enclosures spend analysis clearly says NO!

# US Metal Enclosures Spend Analysis Insights 1

Buyers in the US metal enclosures market are one of the casualties of the ongoing US-China trade war. This statement is reinstated by the fact that the severe supply crunch of steel owing to the increase in tariffs that are imposed on Chinese steel/iron ore imports will have an inflationary impact on the supplier’s production cost of metal enclosures. The US metal enclosures spend analysis hints at an incremental procurement cost incurred by buyers as suppliers are compensating for their recurring production expenditure by increasing the price of the product.

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# US Metal Enclosures Spend Analysis Insights 2 

Lack of spend visibility, owing to an uncategorized supply base, is a perennial source of procurement challenge for companies operating in the US metal enclosures market. A majority of buyers are failing to maintain proper co-ordination with the regional supplier base as well as with suppliers from LCCs. A lion’s share of the increasing procurement spend, as predicted by the US metal enclosures spend analysis, can be attributed to this factor.

Discover how real-time US market spend analysis insights can help you to identify newer and better areas to optimize your procurement spend, request more information.

How to Achieve Spend Management Goals in the US Metal Enclosures Market?

Strategy 1: Strategic selection of suppliers will play a prominent role in helping buyers optimize their recurring procurement spend. It is also recommended that buyers partner with distributors who procure metal enclosures sourced from suppliers based in LCCs in APAC, such as South Korea and India. Distributors offer customization services by engaging manufacturers that are located in low-cost manufacturing countries. This allows buyers to reduce their overall procurement expenditure in the US metal enclosures market. However, buyers must ensure that the goods availability and shipment time align with their delivery requirements.

Strategy 2: By leveraging centralized supplier management systems, buyers can attain better communication among their supplier segments. In the long term, it fosters better spend visibility, enabling the buyers to identify areas to optimize their recurring spend in the US metal enclosures market. The adoption of supplier integration technologies will further help buyers to achieve significant cost savings associated with the management of inventories.

Download the free sample copy of the US metal enclosures spend analysis below and know more about our report’s scope and key geographies under focus.

US Healthcare Industry

SpendEdge’s Tridib Bora on Whether Investing in the Current US Healthcare Industry is Equivalent to Wading in Troubled Waters

A lion’s share of the self-containment in the US economy can be attributed to the thriving healthcare industry in the region. Featuring in the list of the top five best-performing industries, the US healthcare industry is currently witnessing a steady increase in consumer spend and is well on its way towards eclipsing some of the major industries in terms of spend growth. However, this growth is not bereft of obstacles and will pose numerous challenges for any potential investors.

In this article, SpendEdge’s procurement specialist Tridib Bora, refutes the impossibility of investment in the current scenario and shares his eloquent perspective on the current US healthcare industry.

In the near future, what do you think are the areas in the US Healthcare Industry that might experience a downward sliding growth curve?

Tridib: Considering the current market scenario, the ongoing tug-of-war between superpowers China and the US will have a rippling effect on the healthcare industry. To be more specific, the string of tariffs that are being imposed on US imports from China mainly include a range of medical devices that are extensively used by healthcare practitioners as well as medical device manufacturers. This will result in a significant increase in prices, which will compel US healthcare companies to hike the price of their services. Meanwhile, for the medical device manufacturers, this will imply a significant increase in their manufacturing costs, which they will invariably compensate by hiking the price of the end-product. Adding to their woes, the extremely volatile prices of raw materials such as polypropylene and a range of metals that are used to manufacture medical devices will spur the prices of these devices. Disposable syringes, wearable medical devices, laboratory equipment are some examples of such devices whose prices are highly susceptible to significant hikes.

However, the implementation of the revolutionary “Medicare For All” will make the worst nightmare of the health insurance segment come true. The advent of a single-payer program will curb the significance of private healthcare-insurers with no requirement to pay hefty premiums or out-of-pocket expenses. Considering the USD 1,048 billion value that this sector adds to the overall US healthcare industry, a slowdown in the growth of the healthcare insurance sector will put a lid on one of the major outlets of revenue for the US healthcare industry.

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Based on your observations, would you advise the investors to wait till the US healthcare industry bounces back to its old glory?

Tridib: Definitely not! A market of any shape, size, and stature is typically susceptible to highs and lows but never has a dearth of opportunities to grow and opportunities don’t wait. There is no doubt that implementing the “Medicare For All” act will eschew the US healthcare industry’s spend as it limits the scopes of out-of-pocket expenditures. However, it must be understood that compared with any other high-income countries, the gross value of the US healthcare industry will nearly double. The swelling demography of the aged and rising instances of lifestyle-related diseases such as diabetes and heart diseases will compel people to knock at the door of healthcare professionals, ensuring a steady and an assured source of investment for the US healthcare industry. The recent approval of a record 59 novel pharmaceutical products by the US FDA’s CDER will increase the availability of novel medicines which is expected to drive sales in the US healthcare industry. The patent expiries of branded drugs will encourage the governing bodies to issue their approval for generic drugs. Currently, generic drugs are experiencing higher demand than because of their lower price with the same therapeutic effect. This will further increase the scopes of sales in the US healthcare industry, thereby providing an ideal scenario for investments.

Achieving your cost saving goals can be difficult in markets characterized with price dynamism. However, it is not difficult.  Request free platform access to know how such price dynamism is affecting markets in real-time.

According to you, what should a survival kit consist of for investors who are willing to explore the US healthcare industry?

Recent procurement market intelligence reports by SpendEdge have enlisted sets of procurement best practices that are typically attuned to the imposing challenges faced in the current US healthcare industry. I consider these recommendations made on procurement as an essential component in the survival kit in the dynamic US healthcare industry. For buyers, the increasing price of medical device is visibly their major concern. While increasing raw materials prices are compelling suppliers to increase the price of the devices, it is prudent of the buyers to select an ideal distribution channel which can open opportunities to save costs. For instance, engaging with suppliers within their geography will empower buyers with a better negotiation power which will usher more scope for discounts while reducing delivery time. Usage of medical components such as disposable syringes entails other auxiliary objects. Procuring all these objects separately will entail a skyrocketing expenditure. Therefore, it is advised that they consolidate their procurement requirements by engaging with suppliers that have a portfolio of diverse products to cater to the buyer’s diverse needs.

Want to know about the best procurement practices and strategies to maximize your ROI in the US healthcare industry? You are just a click away: 

Digital Signage Market

Digital Signage Market: Key Challenges and How SpendEdge Can Help Procurement Teams Overcome Them

The marketing notion of “you pay for what you see” is reaching its next level with the advent of digital signages that are gaining rapid acceptance across the BFSI, retail, automotive, FMCG, and e-commerce industries. Enterprises from these sectors are capitalizing on the fact that the purchasing intent of shoppers is mostly influenced on the spot by the graphic representation of products that they desire. According to our new report on the digital signage market, the usage of digital signage solutions at places like stores, hypermarkets, showrooms, and shopping arenas has the potential to boost retail sales by up to 43% as compared with other forms of outdoor advertising. However, it is a well-known fact that any apparent prospects of growth don’t necessarily translate into favorable procurement scenarios for buyers. An unbiased probe into the current digital signage market unravels factors, which apart from driving market growth, will play a significant role in boosting costs associated with the sourcing and procurement of digital signage solutions. 

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Digital Signage Market – Procurement Market Intelligence Report

This report on the digital signage market helps buyers understand the impact of price dynamism on the overall procurement process. Additional information includes an analysis of the key risk management strategies, highlights of the digital signage market leaders, category growth potential, cost drivers, and much more.

Digital Signage Market
Commercial Printing Report Image-170x260

Global Commercial Printing Industry – Procurement Intelligence Report

This report will help market leaders understand the impact of price dynamism on the overall procurement process. Additional information includes an analysis of the key risk management strategies, highlights of the commercial printing companies, category growth potential, cost drivers, and much more.

This blog on the digital signage market highlights some of the disruptive factors and offers actionable insights into strategies for the effective procurement of digital signage solutions.

Implementation of advanced technologies such as AI

There is no doubting the fact that AI is the next big thing in the digital signage market. The very idea of eliciting better engagement from shoppers and to offer them a more personalized experience fuels the induction of AI. However, executing this cause comes with a cost. Implementing AI is one of the major cost components for suppliers in the digital signage market. The stark shortage of professionals with expertise in these technologies is further adding to the cost quotient of implementing this technology. The intensifying competition in the market is also compelling all the companies operating in the digital signage market to make strides in terms of technology and gain a competitive edge over their counterparts. In the years to come, AI will become indispensable and continue to make significant additions to the supplier’s OPEX. Invariably, suppliers will compensate for this recurring expenditure by increasing the purchasing price of digital signages.

Increasing expenditure on energy

The functioning of digital signage boards entails huge energy consumption. Large displays consume high energy as compared with small displays; however, small displays do not provide the necessary information to customers as they have space constraints. In addition, increasing costs of utilities are further disrupting the procurement scenario in the digital signage market.

Suppliers incurring heavy compliance costs

The manufacturing process of digital signboards involves the usage of CFCs, carbon tetrachloride, and methyl chloroform. With the environmental watchdogs tightening their scrutiny over the usage of these materials, suppliers are compelled to use organic solvents such as ketones and alcohol. This translates into further addition to the suppliers’ OPEX in the form of increasing compliance costs.

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SpendEdge Advantage

Smart Procurement in the Digital Signage Market

Despite the presence of numerous challenges, procurement specialists at SpendEdge argue that such challenges are the by-products of the market growth and do not necessarily have to be the reason to restrict cost-effective procurement of digital signages. This is evident in the substantial spend growth of the digital signage market, which is now expected to touch a value of more than USD 7 billion by 2023. In a recent procurement intelligence report on the digital signage market, experts have enlisted a set of procurement best practices that address some of the prominent challenges faced during procurement of digital signage solutions. Some of the procurement best practices that are highlighted in this report are enlisted as below:

  • In view of the disruptive factors stated above that are affecting the digital signage market, it is recommended that buyers engage with suppliers that are adopting energy reduction programs in their manufacturing facilities to reduce their energy requirement and optimize their OPEX.
  • Buyers should look for suppliers that can provide insurance for all the equipment or displays installed across multiple locations. This can ensure monetary coverage in case of damage to the display or other equipment, which can arise because of accidents, calamities, or other factors

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transportation industry

Top Trends Influencing the Transportation Industry Market Size

Transportation Industry Analysis

The transportation industry is the backbone of the US economy and an integral part of almost every business. It takes a major share of a nation’s GDP for investment, revenue generation, and employment creation. By investing in this sector, many multinational companies position themselves to better facilitate the flow of goods in the market. However, companies must analyze numerous distinct business models existing within the transportation industry that are reshaping the industry with the involvement of newer megatrends. Not only this, but they should also assess how the entry of new players is giving the desired momentum to the industry. To help companies analyze all such factors, we have highlighted the key factors impacting the transportation industry growth and market size.

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Key Factors Impacting the Transportation Industry Market Size

Fleet management system

The new age fleet management system now offers a variety of new features and functions. Managers can set up geofences to track the movement of vehicles, optimize routes by leveraging real-time data, and improve vehicle utilization. They can also track vehicle maintenance needs to avoid breakdowns. Additionally, they can track factors impacting the safety of vehicles and improve their services. This is improving the services offered by the industry and increasing the transportation industry market size.

Emergence of e-commerce alongside traditional channels

Growth of online-driven business (B2B) and business-to-consumer (B2C) has magnified the criticality of meeting customer expectations. This has increased pressure on the transportation industry to reformulate their e-commerce transportation strategy and enable delivery speed apart from delivering dependable and flexible services. Shippers can no longer rely on any shingle mode of transportation to improve their customer experience. Therefore, companies must focus on improving visibility, enhancing end-to-end transparency across the entire network, and delivering competitive services at profitable margins to increase the transportation industry market size. 

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Internet of Things

The IoT technology makes it possible for companies to monitor equipment, control devices by using sensors and network communications. It can up-stream in the ordering, processing and warehousing chains and make the supply chain more responsive. During transport, companies can gain better insight for shippers and receivers, capture information about the truck and environment, provide last mile visibility to cold chain logistics companies and improve the transportation industry market size.

Inability to gain insights regarding the latest technologies can impact the transportation industry market size. Stay a step ahead by requesting a free demo of our procurement platform and gain exclusive transportation industry insights from procurement experts.

Drone delivery and driverless cars

While few big companies have announced their plan to use unmanned flying drones to deliver products to customers, cost factors are likely to postpone their operations for a few more years.

On the other hand, driverless vehicles can affect the logistics and transportation market size. Companies have already started testing driverless cars on open roads and working to improve the capabilities of such vehicles. Also, some manufacturers have introduced semi-autonomous driving capabilities in their vehicles. This will address the issue of labor shortage and improve safety while increasing the transportation industry market size. 

To gain accurate transportation industry market size and statistics, request for more information from our analysts.

supplier performance management

4 Key Supplier Performance Management Best Practices

In a globalized and outsourced environment, it is crucial for companies to manage the performance of suppliers, particularly in the executive suite. Companies typically spend half of every dollar on goods and services purchased from external suppliers. They tend to focus more on their core competencies and outsource no-core operations. This increases the dependency on suppliers. In certain industries, the purchases from external suppliers range from 70% to 80%. This increased dependency on suppliers not only increases an organization’s supply risk but also exposes them to scenarios such as safety issues or lack of regulatory compliance. To continually improve the operational performance, you must not only select appropriate suppliers but also manage their performance over time.     

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Supplier Performance Management Best Practices

Supplier performance management best practices #1: Build supplier scorecards

Supplier performance management is crucial for companies to align KPIs with business goals. If you want to ensure quality products/ services from suppliers, you must develop a formal agreement that can clearly help suppliers understand your needs. A written agreement enforces accountability and helps companies to reduce risks. Building a supplier scorecard improves the ability to track, measure and analyze supplier performance while identifying hidden cost drivers and risks.

Supplier performance management best practices #2: Improve supplier evaluation process

Factors such as sales, profitability, and liquidity are typical indicators of financial strength. Assess the financial strength of key suppliers and identify negative trends in advance of any major problem. It is not necessary to rely solely on financial reports as operational performance metrics can reveal many potential financial issues for companies. Obtain reports from suppliers or conduct internal supplier evaluation to measure suppliers’ performance. Business processes and practices can also help you understand how a supplier runs its business.   

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Supplier performance management best practices #3: Identify gaps, prioritize and communicate

Scorecards, financial metrics, reports and alerts can help you analyze the gap between the target and the actual performance for suppliers. Use this information to review the impact of performance gaps on their business in order to prioritize and communicate the priorities of the gaps. Ask for a remediation plan to focus on objectives that need improvement. The use of collaborative supplier portals can help improve coordination between both parties in such a situation.  

Inability to develop a supplier performance management template can restrict companies to identify gaps. Stay a step ahead by requesting a free demo of our procurement platform now!

Supplier performance management best practices #4: Reward suppliers

Supplier performance management should focus more on raising standards rather than simply maintaining them. For that, your supplier agreements should include provisions to reward great performance apart from penalizing shortcomings. Most companies weight the balance in favor of penalties, that merely support the maintenance of performance levels and miss out on incentivizing supplier performance improvement.   

To know more about supplier performance management best practices, request for more information from our analysts.

inventory management

Minimizing Costs and Maximizing Sales with Better Inventory Management

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest newsletter on minimizing costs and maximizing sales with better inventory management. The article offers highlights the challenges faced by companies in improving the inventory management process. The article also offers detailed insights into the top inventory management techniques that can help companies to minimize the loss of sales, reduce storage costs and improve the business productivity. 

Why Should You Improve Purchasing and Inventory Management?

Most companies still dread the word “inventory”. They consider it an arduous task due to the efforts involved in managing it. This makes them overlook the fact that improving the inventory management process is crucial to minimizing costs. Also, the increasing need to satisfy customer demand without overstocking items cannot be fulfilled without streamlining purchasing and inventory management.

The article highlights how improving inventory management process can help companies to maintain proper stocks, minimize dead stock storage, and significantly lower inventory costs. It also highlights how inventory control data can facilitate accurate ordering practices and help companies maintain right-size inventory without wasting resources.

Roadblocks Companies Face While Improving the Inventory Management Process

Inventory management in many categories involves complex systems that comprises of interrelated and interlocking subsystems. The pharmaceutical category is one of them. Companies in the pharmaceutical industry face several challenges, especially when it comes to meeting the demands for new and personalized therapeutics.

To help you better understand challenges, we have outlined the key factors impacting the process. We have explained how lack of accurate information, inadequate facilities to support large inventories, and the inability to provide the right temperature can impact the pharmaceutical companies. Not only this, our experts have also highlighted the best practices to optimize your inventory levels.

Successful Strategies to Improve Purchasing and Inventory Management

Our experience with clients has proved that with better inventory management techniques in place, organizations can improve their cash flow and provide better customer service. They can increase profits, gain significant competitive advantage, and boost brand value by controlling inventory, avoiding spoilage, and reducing storage costs.

This article will help you understand the best techniques adopted by best-in-class companies in the retail category. It highlights how FIFO strategy can help companies to reduce unsellable spoilage and minimize obsolete products in the inventory. Also, it shows how setting par levels can make it easier for companies to systemize the process of ordering

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source to pay

Successful Strategies to Improve the Efficiency of Your Source to Pay Process

Source-to-pay or S2P refers to the end-to-end process involved in procurement. The process expands its capabilities to include the “sourcing” of products and services. The source to pay process focuses on behavior–compliance and policy enforcement. It helps companies to improve their process efficiency and better spend management. However, not many organizations get the desired ROI of implemented strategies from the source to pay process. The process is shared by Procurement and Accounts Payables process, creating an ambiguity in the ownership. Although finance claims ownership, the ownership for tactical procurement is often distributed with strong stakeholders. This affects the process efficiency and transparency significantly.

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Strategies to Improve the Source to Pay Process

Improve the shared process

Discrepancies in targets for procurement and accounts payables (shared process) is one of the major reasons for inefficiency in the source to pay process. Mostly procurement targets include identifying savings, managing categories and suppliers, and supply risks whereas accounts payables targets focus on improving process efficiency to accelerate invoice management. Understanding the difference in objectives in the shared process is imperative to connect the procurement and the accounts payable process. Aligning targets can improve cash flow management and help companies to assess the supply pool.

Manage strategic and tactical spend

Procurement often refers to spend as being either strategic or tactical. Strategic spend is managed in the ERP solutions or by category-specific tools whereas tactical spend refers to spend in indirect materials and services categories. Strategic spend constitutes three-fourth of the spend and is important from the procurement perspective. On the other hand, spend value may be low for tactical spend but the volume is usually high. Therefore, companies need to manage both strategic and tactical spend to improve the source to pay process.  

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Manage Invoices

Establishing a common invoice management process can help organizations to channel all invoices. The process will capture the invoice data for invoices that lack purchase order, contract or goods receipt data to match against. It will provide the end-users with pre-populated fields and accounting information lessening the need for interaction with Accounts Payables.

Inability to establish an invoice management process can impact the source to pay process for companies. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the source to pay process.  

Reconcile the purchase order

Reconciliation of the invoices, purchase order ensures that companies receive what they have ordered, and amount matches up the purchase order. Once the reconciliation has been done, Account payables can issue the payment based on the payment terms of the supplier. While paying to suppliers, companies can adopt electronic payments or payments via credit cards.

To gain detailed insights regarding the strategies to improve source to pay process, request for more information from our analysts.

oil and gas industry

Key Procurement Challenges in the Oil and Gas Industry

Oil and Gas Industry Overview

The US oil and gas industry is booming due to significant exports and imports. New international offshore oil fields are being discovered and companies are creating new opportunities for revenue growth. But China’s gradual shift away from coal and increasing interests for liquified natural gas (LNG) is increasing the complexity and risk of the business operations. Additionally, ever-changing regulatory frameworks, continued negative public perceptions, the emergence of battery electric vehicles, geopolitics, and decarbonization policies are adding to the growing complexities and scrutiny that oil and gas companies are operating within. Therefore, it becomes a necessity for companies in the oil and gas industry to re-evaluate how they explore, produce, move crude, refine and distribute their products to satisfy increased demand. Here are major challenges facing the oil and gas industry for reference. 

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Major Challenges in the Oil and Gas Industry

Capital Cost

Due to high operational and maintenance costs, companies in the oil and gas industry have to look at costs on a Whole Life Cycle. Producing crude oil is an expensive process and requires companies to venture into marginal fields to stay competitive in the market. This is one of the major challenges faced by oil and gas companies as high capital investment for small field reservoirs are usually a risky option. Optimizing production systems should, therefore, be a priority of the oil and gas industry.

Supply Chain Visibility

Most companies in the oil and gas industry operate in a most physically challenging environment. They have complex operations and factors such as volatile oil and gas prices, complex regulatory norms, and third party suppliers, which further add to the complexity of the situation. Improving supply chain visibility to manage risks, control costs and optimize the performance of oil and gas companies becomes a task for companies in such a situation.

Wondering how fluctuating oil and gas prices can impact the growth of companies in the oil and gas industry?

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Stringent Standards

The latest 2016 Paris Agreement negotiated under the United Nations Framework Convention on Climate Change to address the threat of keeping the global temp low is compelling companies to rethink extraction, production, and distribution methods to continue their operations. They need to provide guarantees and ensure transparency in the environmental management to meet increasingly stringent environmental standards.

Inability to meet stringent environmental standards can make it difficult for companies to sustain themselves in the oil and gas industry. Give SpendEdge a try by subscribing for a free demo to our platform and understand the market risks in detail.   

Talent shortage

Like any other industry, the competition for top talent is fierce. But with an aging and shrinking talent pool, employee onboarding, retention, and training have become a major issue in the oil and gas industry. Big companies need to invest in attracting the talent pool as emerging markets such as India and China are not only increasing global demand for oil and gas but also competing for talent.

To know more about the challenges facing the oil and gas industry, request more information here!

US pharmaceutical industry

Strategies to Achieve Procurement Excellence in the US Pharmaceutical Industry

US Pharmaceutical Industry Overview

Increased globalization and complexity of the pharmaceutical supply chain has made the procurement process extremely challenging for organizations in the pharmaceutical industry. Companies are constantly facing supply chain interruptions, unexpected expenses, and quality control issues. As a result, they need to identify ways to increase revenues and efficiency in every business area. Innovative pharmaceutical procurement can certainly be an option for companies to gain a competitive advantage and improve sustainable efficiency. Certain strategies can also be followed by companies in the US pharmaceutical industry to address procurement challenges such as regulatory hurdles, supply chain disruptions, quality, and inventory issues.

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Steps to Achieve Procurement Excellence in the US Pharmaceutical Industry

Understand Regulatory Requirements

Numerous US agencies are involved in the legal process for pharmaceutical material imports apart from the Drug Enforcement Agency (DEA). Companies must navigate the nuances and requirements of all legal and regulatory entities to improve process efficiency. They should also have a thorough understanding of regulations to avoid non-compliance, unexpected delays, and excess spend. In most cases, regulatory issues can be avoided if organizations have a thorough understanding of regulatory requirements.

Break silos

Most companies in the US pharmaceutical industry still consider procurement as a support function rather than a strategic, integral part of the business, especially for complex categories such as clinical trial sourcing and production equipment purchasing. Business managers feel reluctant to rely on procurement departments for any major procurement decisions. However, companies need to create procurement standards, define procurement roles and responsibilities to help experts select the best partners for their business needs for strategic development.

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Manage Quality

Ensuring quality is crucial for companies to sustain themselves in the US pharmaceutical industry. Organizations should maintain careful oversight of the supply chain to understand the inherent risks associated with products and perform quality assurance checks when an order arrives. While doing quality checks, the American National Standards Institute guidelines must be followed.

Whether you are sourcing from qualified suppliers or relying on a third party to select suppliers, spending extra efforts on due diligence can help you gain a competitive edge by ensuring the supply quality. Also, associating with qualified suppliers can help you determine the status of shipments in real-time.

Inability to meet ANSI guidelines or select the right suppliers can impact the pharmaceutical industry value chain. Stay a step ahead by requesting a free demo of our procurement platform and gain exclusive pharmaceutical industry insights from procurement experts. 

Ensure on-time deliveries

While making purchasing strategies, include inventory management systems that can ensure efficiency throughout each step of the procurement process. Assess the request and prepare for any special handling, testing, and storage conditions the material may require. Also, identify potential supply chain issues before committing to place the order. Besides, companies should analyze records of ordering patterns, lead times, volumes, on-time deliveries, price and forecast fluctuation when negotiating pricing.

To gain detailed US pharmaceutical industry overview and know more about procurement strategies, request for more information from our analysts.

procurement process

6 Key Steps to Improve the Public Procurement Process to Increase the Value for Money

In today’s changing economic environment, public works provide the corporate sector with immense opportunities to compete for profitable work. Therefore, understanding the public procurement process is critical to compete for such projects and be eligible for work.

All levels of government, including Federal, state, and local agencies select potential vendors through competition. Public organizations advertise, collect information, and accept offers to secure the necessary goods and services. The process includes Invitations for Bid, Request for Proposals, Requests for Qualifications, Requests for Letters of Interest, and Invitations to Negotiate. The responses are then evaluated based on the needs of the organization without price being the determinative factor. However, many organizations still face certain challenges when it comes to improving the public procurement process. Here are the key steps involved in the public procurement process.

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Steps Involved in the Public Procurement Process

Step 1: Requirement identification

Organizations must determine the objectives for the procurement and have a detailed clear scope of requirements. They should also research the market and gain insights to understand capabilities and restraints. While doing so, organizations should also ensure probity arrangements and meet government transparency requirements.

Step 2: Scope of the procurement  

Rights products are vital for organizations. Some organizations have standards to help determine specifications. Selecting the goods or services to be purchased are subject to coordinated procurement arrangements that must be used. Then, estimate the value of procurement and comply with the rules set by the government entity.

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Step 3: Determine the procurement method

In a public procurement process, it depends on the organization whether they want open tenders or limited tenders. Open tenders generally involve one stage (Request for Tender) and need to be advertised on the official website. Limited tenders are directly asked from or more suppliers. In this, the organization qualifies suppliers to determine the best products.

Step 4: Explore sourcing options

Notify the market to obtain products. For open tenders, ensure that the minimum requirements are met. Include essential information in the request documentation to enable suppliers to develop and lodge competitive and compliant submissions. Also, use appropriate limitation of liability and standard contract clauses to improve the public procurement process.

Inability to improve the public procurement process can restrict companies to procure the best products for their businesses. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the public procurement process cycle.

Step 5: Evaluate Submissions

Deal with unintentional errors in tenders in accordance with the set guidelines. Undertake a financial viability assessment of preferred suppliers to improve the public procurement process. Also, provide sufficient documentation and information to the delegate to enable them to make an informed decision.

Step 6: Manage Contracts

Developing a contract management plan is crucial for organizations to assist the entity to understand and implement obligations under the contract. If possible, assess contract extension options on a value for the money basis in accordance with the terms of the contract.

To gain detailed insights regarding the public procurement process cycle, request for more information from our analysts.

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