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Chemicals & Pharmaceuticals



Procurement Software for Pharmaceutical Industry



The pharmaceutical industry is entering a phase of maturity.

With expiring patents, proliferation of generic drugs, rising requirements for investment in R&D and marketing and huge pressure from governments and health insurance companies to reduce end-market prices, there is enormous opportunity for procurement to increase its contribution to sustainable business performance improvement. Procurement professionals in the pharmaceuticals industry can proactively drive value-creation by:

  • Seeking and capturing supplier innovation from the earliest stages of research and development all the way through healthcare delivery.
  • Building collaborative, high performance partnerships with Contract Research Organizations (CROs) and other third-party providers of high-end technical and scientific services.
  • Bringing the same measures of procurement discipline to indirect spending as they have often achieved with direct categories.


With a blurring of core and non-core activities and heavy margin pressures, greater off-shoring and outsourcing in niche service areas demand procurement capabilities that go far beyond traditional transactional modes of operation. Procurement functions for pharmaceuticals companies must help their organizations create Comparative Clinical and Economic Value (CCEV) that translates to concrete benefits for payers, patients and shareholders in today’s ever demanding healthcare system.

Industry Challenges
Today’s pharmaceutical industry challenges demand changes in business cultures.

These business cultures evolved during an era of blockbuster drugs in which cost control – especially on the indirect side of spending – was not a major priority.
Pharma companies now face:

  • Diminishing marginal returns and value from new research and drug innovation.
  • Huge pressures on margins with tightening public health policies and rising costs in other areas of healthcare.
  • Economic-value based commercialization and epidemiological pressures shifting focus toward preventive treatments while arresting disease progression to save overall healthcare costs and increase patients’ quality of life.

 







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Markit Global Sector PMI   -  IHS Markit
   (Last update: 8 Jun 2017)

Technology remains top of global sector PMI rankings in May