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Reduce R&D Costs by Simplifying Procurement: Enhance Efficiency, Increase Compliance and Save Costs
With global spending set to increase in the life-sciences and healthcare industry, cost-containment initiatives are becoming critical. This webinar explores the challenges faced by researchers who struggle with inefficient procurement systems and outlines a strategic approach through which life sciences organizations can leverage intelligent procurement processes to enhance R&D productivity and lower the cost of sourcing.
Today, the global life-sciences and healthcare industry faces significant pressure to increase value delivered, enhance efficiency and reduce cost. To achieve this, several organizations are shifting from the fee-for-service (FFS) to value-based care (VBC) payment models. In this new model, healthcare providers are reimbursed for positive health outcomes instead of services delivered.
Even as local and international regulations become more stringent, new laws are changing established processes for procurement, sourcing, research and development (R&D), etc. With stricter controls to prevent counterfeiting and ensure quality, pharmaceutical companies need to ensure that ingredients are sourced from the right suppliers. This presents significant challenges for compliance, which can further drive up cost.
With existing cost-saving methods yielding little, organizations need to find innovative ways to increase efficiency and accelerate drug research while containing costs.
Challenges in R&D procurement
Procurement for any R&D project beings with identifying requirements such as lab supplies, reagents, compounds, etc. While most organizations have internal systems through which some of these items can be found, cost-effective and efficient procurement remains a challenge. Most of these systems include multiple vendors, require manual operations and have complex rules and convoluted processes that cause significant delays in releasing purchase orders (POs).
In cases where these ingredients/supplies cannot be sourced internally, external suppliers must be identified. Here, ad hoc purchasing of supplies involves complex requisition forms, additional approvals and the possibility of procurement delays – all of which translate to increased cost and extended timelines.
The struggle does not end there. After an order is placed, researchers often spend precious hours managing orders and invoices. They have to track the approval of each request from purchase order to supplier, address supplier invoices and handle payments. In large organizations that have several labs across the world, such a process is usually inefficient as spending cannot be aggregated across the laboratory network. This inevitably raises cost and impairs buying efficiency.
Such a disparate system of procurement is unable to support intelligent collaboration between suppliers and researchers. Life sciences organizations need to act with urgency to mitigate the negative consequences of inefficient procurement systems and processes that lead to:
Higher cost - Ad hoc purchasing does not provide the flexibility of mature supplier relationships that allow for changes, returns, replacements, and better pricing.
Lower productivity - Managing new and existing supplier relationships requires time and effort that can be better utilized within core R&D activities.
Poor visibility - Manual processes prevent visibility into expenditure and supplier selection, both of which are critical factors for reducing cost and streamlining spend.
Increased risk - Besides late deliveries, the lack of procurement visibility can increase the risks associated with fraudulent suppliers and spurious ingredients, creating additional compliance issues.
Join us for this webinar to learn how to deal with the above mentioned challenges in R&D procurement and employ a strategic buying approach.
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