Tag: Pharmaceutical Industry

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Taking a Step Forward towards Better Inventory Management of Pharmaceutical Supplies

Inventory management in the pharmaceutical industry involves complex systems that consist of interrelated and interlocking subsystems. Changes made in one part of the inventory management system have both anticipated and unanticipated consequences in the other part of the system. In recent years, we have witnessed several pathbreaking discoveries in the pharmaceutical industry’s inventory management. However, even small mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary expenses or worse, prescription errors that endanger patient health. Furthermore, the advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, particularly in meeting the demands for new and personalized therapeutics. 

Inventory related challenges affecting pharmaceutical companies

Inventory management

Inventory management in global health pharmaceutical delivery supply chain involves complex processes which include quantification and replenishment decisions. However, due to the lack of accurate information, there is often uncertainty that results in a negative impact on the company’s inventory management system.

Dependency on human resources

The lack of qualified individuals to fill the logistics-related positions in pharmaceutical companies is being recognized as a threat that results in heavy workload and ineffective role performance. Aside from this, it also leaves key responsibilities that include making supply chain calculations and decisions unattended. On the other hand, along with the utilization of accessible and user-friendly IT systems, pressure on HR capacity can be alleviated by hiring a dynamic team of responsible and trained people equipped with enough knowledge and skills.

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Order management

Demand information or data about the availability of products in the different levels of the supply chain are the primary decision-making factors in order management. This translates to the fact that lack of accurate information would make order management to solely rely on assumptions and experience. Consequently, orders may arrive incomplete, inaccurate or delayed, which can negatively affect product availability and overall inventory management of pharmaceutical supplies.

Warehouse management

Most warehouses do not possess adequate facilities to support large inventories. Relying on third-party logistics might not always be effective due to poor organization and not enough designated area for different functions such as receiving, shipping and storage for both damaged and expired products. In the long run, such unfavorable conditions may ultimately lead to discrepancies in logistics and inaccuracies in inventory management.

Temperature control

Factors such as environmental conditions, particularly temperature could greatly affect drug potency. Hence, failure to provide the right temperature during storage and shipment of pharmaceutical products may result in major product wastage. Refrigerated containers or storage rooms might be available in the warehouses. However, there are chances of gaps in ensuring and monitoring of temperature level. This makes cold chain difficult to maintain.

Shipment visibility

Once the manufacturer sends out the product for delivery, it becomes difficult to track its status at different levels of the supply chain. Besides, the exact date when the products will arrive becomes unknown to both the manufacturer and the recipient.

Shake-off inventory management troubles with informed decisions from our pharmaceutical industry experts. Get in touch!

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Overcoming pharmaceutical inventory management challenges

Some of the top pharmaceutical companies are already doing a stellar job at inventory management, but almost everyone has some room for improvement. Here are some best practices for companies in the pharmaceutical industry to optimize their inventory levels:

Get an accurate count

Pharmaceutical companies can’t manage what they don’t measure. Also, a visual scan of the shelves often proves insufficient to provide the sort of accuracy needed. One of the best solutions to combat this is to conduct an annual physical inventory, supported by a computerized inventory system, and monitored by a designated employee.

Maximize the value of inventory management system

Most computerized inventory management systems lack a perpetual inventory management model. Such systems help in keeping tabs on all products in stock and automatically places an order for more product needed to maintain a certain inventory level. The company will need to adjust the parameters depending on the demand. This ensures that the order threshold and amount match the new future demand. Even a computerized system needs to be monitored and maintained for accuracy.

Shed excess inventory

Pharmaceutical inventory loses value as it ages. So, carrying excess inventory amplifies the risk of losing thousands of dollars on expired, unsaleable products. A pharmaceutical company can’t sell products once they pass their expiration date. Although demand can fluctuate from day to day, a week’s worth of inventory should be more than enough to accommodate even unusual spikes in daily demand.

With a capable supply chain and inventory management process in place, there is no looking back for companies in the pharmaceutical industry. But are you there yet? If not, SpendEdge is here to help. Request a free proposal now!

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Strategic Sourcing Analysis Helps an Anti Inflammatory Drugs Manufacturer Develop and Implement a Strategic Procurement Plan – A Pharmaceutical Industry Engagement

Engagement Overview:

A leading player in the pharmaceutical industry was looking at streamlining their procurement process to maximize savings across their supply networks. The failure of their inefficient sourcing strategies had greatly impacted their overall business revenue, as a result of which they wanted to leverage strategic sourcing analysis to gain a competitive advantage.

SpendEdge was approached by the anti inflammatory drugs manufacturer to leverage its expertise in offering strategic sourcing solutions for players across industries. The strategic sourcing engagement entailed a quantitative analysis of various supply chain categories to devise a robust sourcing strategy.request proposal

About the Client:

A top-notch manufacturer and supplier of anti inflammatory drugs operating in the U.S., which is well-known for receiving the WHO and GMP certificates for excellence in delivering quality products. 

Business Challenge:

The pharmaceutical industry client was facing several challenges owing to their inefficient sourcing strategy.


How did SpendEdge Help the Client?

  • Step 1: Conducted an internal needs analysis

Strategic sourcing begins with the process of benchmarking the current performance of the client to identify internal needs and targets before devising the appropriates sourcing strategy. This involved the collection of different types of data from different departments across the organization.

  • Step 2: Analyzing the suppliers market and gathering relevant supplier information

This step revolved around the identification of potential suppliers that are feasible sources of raw materials. The potential supplier base was then categorized based on their ability to cater to the dynamic needs of the anti inflammatory drugs manufacturer.

  • Step 3: Developing and implementing a sourcing strategyrequest proposal

The development of an appropriate sourcing strategy was dependent on the data collected in the first two phases of the engagement. However, determining the right sourcing strategy for a business depends on several factors such as the competitiveness in the supply market, the overall business strategy, and the organization’s risk tolerances.


Key questions answered in this strategic sourcing analysis include:

Pharmaceutical Industry


Benefits of the Engagement:

The strategic sourcing experts at SpendEdge devised a three-step comprehensive approach to help the anti inflammatory drugs manufacturer devise an effective strategy. With the help of strategic sourcing, the client was able to achieve cost reduction and improve supplier relationships. The proposed strategic sourcing framework also enabled them to gather and analyze spend data worth more than $50 million. This enabled them to categorize and deploy the right sourcing strategy and negotiate favorable terms with suppliers, taking advantage of the significant economies of scale. The solution offered also included the development of category-specific sourcing strategies, TCO models, and a detailed supply market analysis.

Why is strategic sourcing essential in the pharmaceutical industry?

Strategic sourcing offers pharmaceutical industry players with several new opportunities to assess the current state of their sourcing strategies and empowers them to effectively use resources and leverage supply market intelligence in devising suitable supply chain strategies.Request Demo

At SpendEdge we collaborate with pharma market leaders, drug manufacturers, medical device manufacturers, and other firms operating in the pharmaceutical industry to help them devise precise sourcing strategies. Our strategic sourcing solutions are aimed at optimizing the supply chain while driving value and cost reductions to ensure our clients gain the strategic advantage to thrive in a competitive market landscape.  


Our Findings:

Our market expertise enables us to understand the unique nature of every market segment, and the complexity in the pharmaceutical industry is what drove us to leverage strategic sourcing analysis to devise robust sourcing strategies that proved to be valuable for the anti inflammatory drugs firm in the long run.

SpendEdge’s strategic sourcing solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. In this strategic sourcing engagement, the three-step approach aided the pharmaceutical industry client to integrate the new sourcing strategies.Request Demo

While inefficient sourcing strategies tend to paralyze most supply chain functions. Successful organizations are the ones that can effectively assess and implement effective sourcing strategies. To do so, our strategic sourcing team helps companies adapt to their culture by working seamlessly with industry stakeholders and decision makers to analyze categories within the pharmaceutical industry.

The strategic sourcing team at SpendEdge comprises of subject matter experts with wide-ranging individual expertise. This enables us to understand what is important to pharmaceutical industry clients and offer custom recommendations and unique solutions to tackle their supply chain challenges.


 If your organization is on the lookout for an objective way to reduce procurement related costs, we’re here to help. Wait no more! Go ahead and get in touch with our strategic sourcing experts to develop custom configured engagement models and procurement research deliverables.

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Top 5 Trends to Watch out for in the Pharmaceutical Industry in 2018

Today, to succeed in the pharmaceutical industry, keeping a check and reassessing strategies is of high importance to pharma companies. This will help pharmaceutical companies to understand and identify the new pharmaceutical industry trends and stay a step ahead of their competitors. Leaders in this industry should retrospect and ask questions on their strategies to grab the best opportunities, mitigate challenges, and fulfill the demands created by the dynamic pharmaceutical industry trends.Get More Info_SE

At SpendEdge, we continuously analyze the latest market trends and developments to help companies devise effective strategies to reduce spend and boost profits.  

Pharmaceutical Industry Trends

 

Entry of tech giants in the pharmaceutical industry

The pharmaceutical industry is going to be a hunting ground for tech giants like Google and Amazon this year. This is one of the emerging pharmaceutical industry trends that will create a huge opportunity for growth and investments in the industry. These giants are expected to make extensive investments in pharma and biotech initiatives, which is good news for the pharmaceutical companies.SE RP

Quality checks and safeguards

Manufacturing products that are of suboptimal quality are going to be a big “NO” for pharma companies in 2018. This is one of those pharmaceutical industry trends that will ensure that only high-quality drugs enter the market. Huge investments in this industry over the past few years have filled the required pipeline of drugs.

Advent of GDPR

EU’s General Data Protection Regulation (GDPR) marks the introduction of a new set of regulations that are related to assembly and collection, storage, and processing of personal data of the customers. With the advent of this new set of rules for the protection of personal data, breach of data and information may lead to greater financial and legal complications for companies in the pharmaceutical industry. This is one of the evolving pharmaceutical industry trends that will compel companies to safeguard the privacy of personal data of the patients and customers.Request Demo

Arrival of artificial intelligence

The benefits of using advanced technologies are going to contribute towards the growth of the pharmaceutical industry, even more in 2018 through artificial intelligence, machine learning, and the Internet of Things (IoT). Through such technologies, benefits like information deployment and analysis of data to keep clinical operations updated of upcoming pharmaceutical industry trends can be achieved. Also, this will help in auditing reports and simplifying unexpected events for the practitioners of pharmacovigilance. According to many market analysts, decisions made by AI and humans will be compared a lot, in the days to come. But a thing that is obvious is that standardization of data will be required to finally make this trend a success. 

Patient-centric approach

2018 is going to witness the ruling out of traditional push marketing and it will be replaced with pull marketing, which basically means that the pharma companies will target its consumers through high-quality content, prime and valuable services, and will be more focused on building a long-term relationship through various groups that engage customers. Digital health and enhanced user experience are going to be the two prime concerns of companies in this business. This is one of the critical pharmaceutical industry trends that will define the patient-centric approach of the industry in the days to come.

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Analysis of Inventory and Spend Data Enables a COPD Drugs Manufacturer Realize Savings of Up to 20% | SpendEdge


Engagement Overview:

A leading pharmaceutical industry player, specializing in the manufacturing of COPD drugs wanted to standardize inventory data to analyze spend across various supply chain categories. To do so, the client approached SpendEdge to leverage their expertise in spend analysis and deep dive into the intricacies of executing a comprehensive spend analysis. A detailed quantitative analysis of various categories within the supply chain was carried out to analyze spend data and develop an effective spend analysis framework.

About the Client:

The client is a well-established pharmaceutical industry firm, specializing in the discovery, development, manufacturing, and distribution of innovative COPD drugs that are used to treat chronic pulmonary diseases.

Business Challenge:

The COPD drugs manufacturer was facing challenges due to their inability to analyze and compare spend levels across various categories of their global supply network. As a result, they were unable to control excess costs in procurement, distribution, and the use of drugs.request proposal


How did SpendEdge Help the Client?

  • Step 1: Harmonization of inventory and spend data across supply chain categories

The first step involved the standardization and analysis of inventory and spend data sets. The adopted strategy standardized the available spend data and created a new data set by combining the spend data from several sources across the supply chain. This combined data set was then used as a single source that represents all the existing supplier relationships and their inherent characteristics while also displaying unique features within the same environment.

A detailed analysis of spend data helped identify situations where spend could be controlled using a more organized approach. It also enabled the client to answer essential procurement questions arising due to their inefficiency in spend data management.

  • Step 2: Identifying and minimizing non-compliant spend

Identifying and reducing non-compliant spend helped the COPD drugs manufacturer to enhance the value delivered to TCO. The solutions at this phase offered detailed insights on ways to reduce the total cost of ownership while maintaining value.

  • Step 3: Development of a bespoke spend analysis platform

The spend analysis experts at SpendEdge devised a three-step comprehensive approach that helped the COPD drugs manufacturer to gain a holistic view of spend categories. It also enhanced spend visibility and helped drive overall savings by a considerable percentage.


Key questions answered in this spend analysis study include:

COPD Drugs

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Benefits of the Engagement:

This spend analysis engagement revealed that there were two major issues of concern that affected the client’s overall performance, i.e., inefficient inventory and spend data management.

The developed spend analysis framework enabled the COPD drugs manufacturer to enhance spend visibility across different supply chain categories. Our spend analysis experts also assisted the pharmaceutical industry client in improving their spend management capabilities which, in turn, helped them drive savings.

Why incorporate spend analysis?

There are substantial opportunities hidden in the spend data generated by typical spend management systems across industries. Though most enterprises are unaware of such ‘hidden opportunities’, the data is available for analysis. Spend analysis is what enables organizations to extract such valuable insights from spend data.

SpendEdge’s spend analysis solutions are designed to offer enhanced visibility into the organizational spend data in terms of part number, geographic location, business unit, and commodity, thereby enabling market leaders to clearly visualize the companies spend patterns and track expenses.

Moreover, a systematic spend analysis that ties years of consulting expertise and technological capabilities can help convert raw spend data into strategic sourcing opportunities to drive savings in industries as complex as the pharmaceutical industry.


Our Findings:

In this spend analysis engagement, we helped a COPD drugs manufacturer enhance their spend management capabilities by devising a robust three-step approach aimed at developing a spend analysis platform. A similar approach can be adopted by other industry players to maximize the potential of their supply network and enhance spend visibility.

With several pharmaceutical industry leaders focusing on improving their spend management capabilities to drive savings by leveraging spend analysis solutions. It is essential for other players to enhance their strategies to sustain the competitive pressure. So, what are you waiting for! Invest in spend analysis and turn your challenges into a competitive advantage.


  To know more about our spend analysis solutions and how it can help pharma companies

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Leveraging Spend Analysis Helps a Leading Pharmaceutical Products Manufacturer Improve Spend Efficiency

Overview of the Pharmaceutical Products Market

Pharmaceutical products are commonly referred to as drugs or medicines and form a fundamental component of both traditional and modern medicine. The pharmaceutical products includes companies that are responsible for the production, development, and marketing of drugs. The growth of the pharmaceutical products market can be attributed to the rise in aging population. Moreover, with the growing global middle-class population and rising per capita expenditure on medicines, the growth opportunities for pharmaceutical products has increased. Also, the regional demand for pharmaceuticals may differ based on the developments in emerging economies.

In the coming years, the global pharmaceutical products market is expected to proliferate owing to the increase in request free proposaltailored R&D and product portfolio changes to meet emerging markets’ healthcare needs.

The Business Challenge and Journey

The client, a well-known pharmaceutical products manufacturer, was looking at leveraging SpendEdge’s spend analysis solution. The client was facing several issues in analyzing their spending patterns. Also, instabilities in their supply chain increased their maverick spend and supply chain risks. The client wanted to commission a spend analysis engagement to improve their spend efficiency and optimize customer base. Additionally, they also wanted to identify and mitigate risks to overcome substantial financial losses.

To identify challenges in the supply chain functions, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the pharmaceutical industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.

Why should you leverage spend analysis?

In today’s economy, spend analysis is gaining respect as a potent weapon in the battle to squeeze new savings out of the procurement processes of various business segments. Spend analysis enables organizations to reduce inventory, improve sourcing cycle time, and assists in long-term planning and economic forecasting. It also provides a realistic picture of future spend requirements based on the forecasted data.

Fundamental questions answered in this spend analysis study include

Pharmaceutical Products


The Result

SpendEdge’s spend analysis solution offered meaningful insights that enabled the pharmaceutical products manufacturer to identify the potential bottlenecks in the supply chain. Also, the solution enabled the client to develop a strategic sourcing model to reduce supply chain risks and establish their presence in the pharmaceutical industry. It also helped the client in analyzing and evaluating the current state of their purchasing practices and implement strategies to improve their spend efficiency. Implementing spend analysis eventually led to improvements in compliance, reduced cycle times, and uncovered maverick spend.

Future challenges and opportunities

  • Patient-centric healthcare: Advancements in technology are driving a shift towards patient-centric healthcare, as evidenced by wearable biometric devices and telemedicine. This has enabled the patients to take a more active role in any treatment plan their doctor may prescribe. It also offers several growth opportunities for companies in the pharmaceutical industry to reach the consumer through wearables and other devices.
  • The growth of biosimilars: The growth of biosimilars will present competition for biologics and represent significant savings to the consumer base. They also present new opportunities for companies in the pharmaceutical industry and those who excel at marketing biosimilars within their product range stand to gain an edge over their competitors.
  • Policy reform: Any changes to healthcare with a new presidential administration will undoubtedly have an impact on the pharmaceutical products manufacturing industry. However, the challenge for players in this sector will be to enforce changes while maintaining a steady market growth.
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Why are Pharmaceutical Fine Chemicals Witnessing High Demand?

Pharmaceutical fine chemicals are complex, single, and pure chemical substances that are mixed with generic commodity chemicals to form complex molecules. Within the chemical industry, fine chemicals are produced in limited volumes and sold at relatively high prices. The market for these chemicals is highly fragmented with multiple privately owned companies contributing towards the global supply alongside large chemical enterprises. Pharmaceutical fine chemicals can be further categorized into building blocks, intermediaries, and APIs. A recent procurement market intelligence report from SpendEdge on the global pharmaceutical fine chemicals market has estimated the market to grow at an impressive CAGR of 7.7% over the next couple of years. The analysts attribute this growth to the increasing number of patent expiries, which will drive the demand for generics and biosimilars; thereby, driving the demand for fine chemicals.SE_Demo2

Growth drivers in the global pharmaceutical fine chemicals market

New drug approvals

The number of drug approvals in the US by the FDA and EMA in EU has been on a rise, providing significant opportunities for players in the pharmaceutical industry. Pharmaceutical fine chemicals are widely used in the drug formulation process, and this increase in the number of drug approvals will result in the increased demand for such fine chemicals. Furthermore, new drug approvals and patent cliffs are leading to the bulk production of several drugs. This, in turn, will be a direct driver for the pharmaceutical fine chemicals industry.

Growth of the biologics industry

The introduction of targeted therapies along with rising adoption of personalized medicine is anticipated to fuel the demand for biologics. Additionally, biologic drugs have also been known to treat chronic diseases better and with lesser side effects. Since pharmaceutical fine chemicals are required in bulk quantities to produce biologics drugs, the growth of the biologics market will directly drive the demand in the fine chemicals market. Furthermore, the market for global biologic drugs is expected to grow at a CAGR of over 10% during the forecast period with companies such as Eli Lilly and Company, Novartis, and AstraZeneca investing heavily in developing biologics.

Growth of the pharmaceutical industry

The global pharmaceuticals market is expected to record a robust growth rate of around 6% during the forecast period, driven by consumer spending to cure medical ailments. Such an impressive growth rate is subsequently fueling the demand for innovation in the market. As a result, pharmaceutical companies are investing heavily in R&D activities to formulate effective medicines, especially in the field of oncology, cancer, and nervous system disorders. Additionally, companies are increasingly investing in novel formulations as well as reformulation approaches to support and sustain the rising demand. This, in turn, will drive the demand for pharmaceutical fine chemicals as they are used as raw materials in advanced formulations.

Increasing number of patent expiries

The pharmaceutical industry is highly dependent on patents to protect their innovation and recover a large part of their R&D costs. However, after a predefined period, the patent expires, and any manufacturer can formulate the medicine, which often results in a reduction of prices. Since the monetary value of fine chemicals used in the formulation of medicines is low as compared to the overall drug development cost, this market is largely dependent on the volume of sales for attaining value growth. As a result, the demand for fine chemicals will surge due to increased production of generics and biosimilars.


Read more about the growth drivers in the pharmaceutical fine chemicals market along with supply market insights, procurement best practices, sourcing strategy, and pricing insights in SpendEdge’s upcoming report on the global pharmaceutical fine chemicals market.

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Supply Chain Management Helps A Pharmaceutical Industry Client Decrease Invoice Cycle Time and Improve PO By 35%

Overview of the Pharmaceutical Industry

The global pharmaceutical industry is typically responsible for the development, production, and marketing of medications. With growing concerns pertaining to healthcare treatments, the pharmaceutical industry has witnessed a promising growth across the globe. The industry is also expected to witness a considerable growth, owing to the changing lifestyles, aging population, and unhealthy eating habits. request free proposalMoreover, the positive global influence of drugs on health, prosperity, and economic productivity is compelling pharmaceutical industry manufacturers to invest highly in R&D to revolutionize the treatment process.

However, a few factors are influencing the growth prospects of the industry. A few factors include:

  • Rising customer expectations: Today, pharmaceutical industry players need to ensure that new therapies are clinically and economic better than their alternatives. This is because the commercial environment is getting harsher with customers looking for cost constraints in the products and services offered. Moreover, the increasing incidence of illness across the globe is forcing players to deliver promising solutions with the utmost quality.
  • Policy reforms: With healthcare being the top priority of the governments across the globe, leading organizations are facing intense pressures to meet the adequate quality concerns pertaining to the products and services offered to the patients. As a result, becomes important for pharmaceutical players to ensure that they meet the regulations set forth by the governments.

Many such factors are compelling pharmaceutical industry companies to leverage the use of robust supply chain management solutions.

The Business Challenge and Journey

The client, a leading pharmaceutical industry player, specializing in a variety of innovative medicines that help treat serious diseases like diabetes mellitus, cardiovascular disease, inflammatory disorders, rheumatoid arthritis, and psychiatric disorders utilized a localized transactional process, which ultimately led to regional inconsistencies and inefficiencies. Their Purchase Requisition (PR) to Purchase Order (PO) process was lengthy and inefficient in achieving the desired turnaround time. Additionally, the client lacked visibility and the ability to measure their metrics, which prevented them from attaining global standardization.

To help the client create a centralized procurement operations center to support transactional procurement activities, the supply chain management experts at SpendEdge developed a robust market research approach. The analysis included primary and secondary research coupled with qualitative and quantitative data collection methodology.

During the course of this engagement, the pharmaceutical industry client created a centralized procurement operations center to support transactional procurement activities. The centralized center included performing change order management, generating and transmitting POs, and maintaining a functional helpdesk.  Additionally, the client developed a report and analytics support center to create proof of concept scorecards while conducting new report development. This helped them improve compliance.

Key questions answered in this supply chain management engagement

The Results

The supply chain management engagement helped the client decrease their average PO issuance time to .15 days from 1+ days. Also, the client increased production volume to 120K transactions per year, reduced invoice cycle time, and improved PO by 35%.

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Answers to the questions

Supply Market Intelligence Helps a Pharmaceutical Industry Major Drive Higher Efficiency and Savings

Overview of the Pharmaceutical Industry

The pharmaceutical industry firms are involved in the discovery, manufacturing, and marketing of legal drugs, vaccines, biologics (toxins, viruses, serums, and analogous products), and medical devices such as prosthetics and pacemakers. Products of the pharmaceutical industry which include prescription and over the counter (OTC), account for a significant share of the aggregate health care spending and represent major account items in international trade transactions across developed and developing countries. Most spending growth, across the globe, is expected to be fueled by innovations in oncology, autoimmune, and diabetes treatments.

However, there a few factors influencing the growth prospects of the pharmaceutical industry in the coming years. They are:

  • Rising customer expectations: With the commercial environment getting harsher, healthcare payers enforce new cost constraints on healthcare providers and analyze the value medicines offer much more carefully. Customers today expect new therapies that are economically and clinically better than the existing alternatives, coupled with real-world outcome data to support any claim about a medicine’s
  • Capitalizing on knowledge: Finding a way to harness the full potential of technology adopted by an establishment, and the data in its possession, to benefit from the advantages it brings is crucial for firms across the pharmaceutical industry. Therefore, putting in place the essential tools and processes is a way to ensure sustainable profitability of investments.

Supply market intelligence is a perfect solution to the above factors as these solutions assist firms across the pharmaceutical industry in gaining an in-depth understanding of the latest trends, developments, risks, and recommendations on formulating procurement best practices.request free proposal These solutions also help companies develop superior product and service offerings while reducing their procurement spends.

The Business Challenge and Journey

A leading pharmaceutical industry client wanted to migrate from their current decentralized, manual procurement processes and multiple systems to a robust, centralized and automated procurement solution with the aim of increasing its spend under management and realizing higher productivity and savings. Additionally, the client wanted to improve productivity and efficiency of their procurement function while enabling a robust pre-purchase approval system to accomplish informed purchases.

To provide a single view of the enterprise-wide procurement spend and drive higher efficiency, the supply market intelligence specialists at SpendEdge tailored a wide-ranging research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

The supply market intelligence engagement helped the pharmaceutical industry client enhance integration with suppliers through portal connectivity. This helped them improve processes and manage indirect spend across the supply chain. The client was also recommended a faster payment cycle which aided them in capturing the early payment discounts and realize higher savings.

Fundamental questions answered in this supply market intelligence engagement

The Results

The supply market intelligence engagement assisted the client in gaining greater visibility on corporate spend across suppliers and categories, enhanced productivity, and achieved tighter control and compliance across their business units.

To know more about our supply market intelligence solutions

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Top Trends in the Pharmaceutical Analytical Testing Services Market

The rising cost of drug development process has urged pharmaceutical companies to look out for ways to reduce the overall cost and time. The pharma industry turns towards highly specialized contract research organizations (CROs) who depict expertise in drug discovery assistance, regulatory compliance, lead identification, clinical data management, consultation, clinical trials, and project management. Pharmaceutical analytical testing is one of the research support services rendered by CROs and contract laboratories to pharmaceutical manufacturers. These organizations use various processes to analyze the intermediate drug ingredients and final drugs, so that the quality of the medication can be ensured. Toxicological risk assessments, environmental monitoring, clinical and non-clinical bioanalysis, stability testing, method validation, preclinical research, and biological assay development are some of the services under pharmaceutical analytical testing. The procurement market intelligence report predicts a healthy growth rate of 7.71% for the pharmaceutical testing market.

Request Free SampleTrends in the Pharmaceutical Testing Market

Capability Enhancement Toward Analytical Testing of Biosimilars

Numerous drugs in the pharma industry are nearing the end of their patent lifetime. This has led pharmaceutical companies to divert their attention to biosimilars from biologics. Such move has motivated pharmaceutical testing companies to enhance their capabilities in the analytical testing of biosimilars. Compatibility studies for biosimilars, stability testing, product release testing, and protein analysis of biosimilars are some of the capabilities suppliers have been focusing. Consequently, enhancement of such capabilities reduces the risks associated with drug development.

Rising Demand from Nutraceuticals Industry

Traditionally, the pharmaceutical testing services were availed mainly by the pharmaceutical companies. However, today that trend looks to be slowly changing as nutraceuticals industry is also emerging as an active consumer of these services. This surge in demand can be attributed to increasing regulations for nutraceutical manufacturing companies demanding them to get their raw materials tested for quality and conduct release testing for their products.

Adoption of FTE-based Contracts

Since a long time, pharmaceutical testing service providers have been charging their clients on a per contract or per sample basis. Such pricing strategy is slowly changing as suppliers are looking to charge their clients on FTE-based contracts irrespective of workload, compound, or analytical technique used. The supplier allocates a dedicated team during the tenure of the project and manages the project resources along with the client. Such contracts ensure that the dedicated team members acquire a strong knowledge of the procedures and requirements of the project leading to fewer errors and higher consistency in the output.

Technological Advancements in Analytical Testing Equipment

The pharma industry is pressurizing pharmaceutical testing companies to reduce the testing time for drug ingredients forcing the suppliers to use advanced equipments and processes. For the same reason, the majority of the suppliers are now using HRAM instruments that allow users to identify the target molecule confidently. Additionally, several suppliers are now actively using morphologically-directed Raman spectroscopy, which is based on a combination of Ramana spectroscopy and automated imaging. Use of advanced equipment eliminates the need to perform multiple trials and subsequently increases the reliability and accuracy of pharmaceutical testing.

Read more about the trends in the pharmaceutical testing market along with sourcing strategies, pricing insights, top pharmaceutical analytical testing service providers, procurement challenges, and pricing models in SpendEdge’s upcoming report on the global pharmaceutical analytical testing services market.

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