Consider a biopharma company's journey

Multiple phases of rapid growth

  • Clinical trials
  • NDA submission
  • FDA approval
  • Additional pipeline assets

Significant challenges and risks 

  • R&D productivity & disruptive technologies
  • Compliance/regulatory
  • cGMP manufacturing and supply chain
  • Cash flow

Substantial dependence on suppliers

  • R&D: CRP, PV, lab services and supplies
  • Tech Ops: CRO, CDMO, quality, product development
  • Commercial: Medical education, KOL/Ad Board, media
  • Administrative: Legal, consultants, IT, HR services

Now consider some supplier risks and costs...

Supply Risk:

  • Will you outgrow your current CRO capability?
  • Can your pharmacovigilance supplier support your growth?

Finance Risk

  • Do you have internal audit issues related to the supplier contracting and payment processes?
  • Is your finance staff overworked trying to manage the supplier master data file?

Operational Structure 

  • Are departments adding headcount to their staff to manage suppliers?

Cost Management 

  • Is there a “new normal” to frequently revise budgets due to growing supplier spend and unexpected invoices?

Enterprise Risk

  • Are there enterprise risk factors (pandemics, global unrest, sustainability, etc.) which should be included in the supplier and category management process?

Strategic sourcing and procurement activities support and preserve value creation.