2013-06-19-奥纬咨询-The_procurement_value_in_life_science_12页_270kb

Report Summary

Background and Opportunities

The pharmaceutical industry is under pressure to optimize costs while maintaining profitability due to factors like decreased R&D productivity and patent cliffs. External procurement spend represents about 47% of sales on average and is largely untapped. Optimizing procurement can increase EBITDA by up to 500 basis points, improve risk management, and create growth opportunities.

Three Main Challenges

• Increase Coverage & Collaborative Approaches: Overcome silos by expanding procurement scope to untargeted areas like corporate services and marketing, and foster collaboration between users, prescribers, and buyers.
• Import Best Practices from Mature Industries: Adapt advanced procurement levers, such as total cost of ownership analysis and standardized catalogues, to address spend in manufacturing and R&D, reducing inflationary risks.
• Extend Outsourcing Capabilities: Optimize outsourcing for scientific/clinical and sales activities by balancing make-vs-buy decisions and managing complex partnerships effectively.

How to Execute Effectively

Execution is critical and requires a transformation journey:

• Step 1: Size the prize and align stakeholders by demonstrating potential savings.
• Step 2: Develop detailed action plans and build buy-in through cross-functional teams.
• Step 3: Deploy best-in-class tools and processes to lock down and sustain value.
  Most companies fail at execution due to poor implementation; sophisticated levers yield more savings than traditional methods.

Summary Benefits

Pharmaceutical companies can achieve annual savings of up to 5%, driving significant financial and operational improvements, sustainable through reinforced organizational capabilities.