Procurement. Pharma procurement and sourcing teams feel these burdens as well, operating with leaner staffing models and increasing needs from the business. The move is to further encourage ‘Make in India’ and promote the manufacturing and production of goods and services in India with a view of enhancing income and employment in the country. Stay informed! Sign up to become an Active Cold Chain Member. Companies can for example share temperature-controlled containers for intercontinental airfreight and use the same trucks across Europe. In this procurement procedure, the pharmaceutical companies receive the services or goods in raw shapes through supply c… FREMONT, CA: The modern-day pharma business has to tackle a lot of challenges right from generic drugs, personalized medicines, increasing research, and development cost to expensive clinical trials. However, if you would like to share the information in this article, you may use the link below: www.pharmatechoutlook.com/news/the-imperative-need-of-procurement-process-in-the-pharma-logistics-nwid-1153.html, Contract Research Organization Middle East. In other words, a good sourcing and procurement lead will relate and adjust accordingly. Long-term partnerships and mutual understanding will reduce the risk of unfair pricing or a stalemate of the process, when each party tries to squeeze the margins of the other parties and the pharmaceutical company ends up with a substandard service. It became fashionable later than in most industries but today it is with us, and it is here to stay: • For the traditional pharmacos, the generics are putting a lid on the A strategic procurement process, with procurement working as an internal consultant to the business units, must put more focus on building partnerships with suppliers of pharmaceutical transport rather than making one-off purchases. All phases shall be executed simultaneously or sequentially as per requirement during new product development process. Process modeling and flow charts in the pharmaceutical industry document work process steps undertaken to bring drugs to the market, from research and development to manufacturing. All logistics procurement methods follow tight legal frameworks to make sure that all standards are being met and quality in the selection process is in place. New pharmaceutical innovations, such as large molecule biologics, stem cell therapy, and personal medicines, drive the need for innovative thinking beyond the area of research and development. The quickest way to achieve a more high-tech process in procurement outsourcing is digitisation; a modernisation that can aid pharma companies in their mission to achieve more productivity. Indirect spend categories such as IT, MRO, office supplies, travel, logistics, and marketing account for millions of dollars in pharma companies. Paper-driven procurement has a cascading effect on an organization's bottom line. Spending on items that are not directly incorporated into the value creation process is often neglected. So we study the pharmaceutical industry and its procedure of procurement. Pharmaceutical process flow charts, also called workflows, process maps, or value stream maps, are Such spending account for millions of dollars that could be saved with a better procurement process. We can’t say any single process is easy in this process. Back Automating Procure-to-Pay Process To Boost Savings In Pharma Sector. India is Pharmacy of world and there is number of manufacturing units available in all parts of India Specially Himachal & Uttarakhand. The upcoming trend of personalized medicine, where there are no clear answers as to how these products will be shipped safely, will need new, advanced solutions. With procurement, by reducing waste and optimizing resources, pharma companies can greatly boost their efficiency. Transporting these kinds of precious and sensitive drugs across the globe increases the risk of damaged goods dramatically, as well as raises the demand for innovative logistics solutions. Different companies have different mode of procurement procedures. Pharma A pharmacy procurement officer drafts purchase orders for the required medication for a pharmacy and ensures the orders are in par with the budgetary allocation. Managing spending and back office processes shouldn't be. pharmaceutical procurement are not meant to regulate activities of international ... the pharmaceutical industry, essential drugs supply agencies and universities. Although the operational ... influence on the procurement process by special interest groups. By using this website, you consent to our cookies and privacy policy. Another example is an Asian biotechnology company that, while building a new manufacturing facility in South Korea, investigated how temperature-sensitive products could best be handled and shipped out from the facility and what adjustments could be made to improve air cargo transport efficiency. Collaboration with extern… These are two examples that show how a strategic procurement process can be developed for the transport of raw materials and finished products long before the production of the pharmaceutical has even started. Indirect spend categories such as IT, MRO, office supplies, travel, logistics, and marketing account for millions of dollars in pharma companies. From insularity to innovation: As a technical operation with a defined – if limited – span of control, sourcing and procurement has lacked the bandwidth to test out new ideas. Contact one of our colleagues for a free consultation and see how we can help you balance quality versus cost. This kind of data is important not least for the growing number of sensitive products on the market and makes it possible to take action during the actual transport. IoT in pharma manufacturing coupled with big data and advanced analytics can scrutinize massive amounts of data that can be harnessed to improve manufacturing efficiency. Why should the pharma industry opt for better procurement practices? Driving Innovation. In any organization, procurement strategies playing a vital role. And as in every other business, the collection of large amounts of data and data analytics is starting to have a real impact on the logistics industry. Procurement must be more than just cost cutting In today’s challenging environment, aggressive cost control has become a common theme in the pharmaceutical industry. To obtain more information on procurement in the pharma industry, request for more information from our experts now! Deese believes, regardless of industry, the qualitative effects of e-enablement on the procurement process will be profound, including: Seamless, ease of use for the customer; • Procurement mastery reflects qualitative maturity and takes into account strategy, sourcing and category management, SRM, technology, P2P and workforce. In this context, Good Manufacturing Practice (GMP) requirements also influence purchasing and procurement activities. Another effective approach is the use of Raman spectroscopy, the company can also carry out an identity test, in order to verify that they have received the right shipment, without unpacking the material. Innovations in logistics can innovate the procurement process Similar to the pharmaceutical industry, innovation takes place also in logistics. Additionally, clear procurement roles and responsibilities are a must to ensure a smooth flow of operations. And as in every other business, the collection of large amounts of data and data analytics is starting to have a real impact on the logistics industry. For example, a shipment could be rerouted or the batteries in an active temperature-controlled container recharged, should there be disruptions and delays. Development, testing, quality control and navigating the regulatory environment in the pharma and life sciences industries are necessarily complex. Whether you would like to know more about our services or to book an active container, there are many ways to get in touch with us. Communicating with and learning from logistics suppliers about new innovations is an expected approach when developing an innovative procurement process where the use of new options can keep down total cost of ownership. Read on to find out how OpsDog’s flow chart steps and templates can help pharmaceutical operations managers prepare for traditional automation, robotic process automation, reduce regulatory … Innovation in procurement and sourcing processes could lead pharma companies to achieve … Logistics procurement in the pharma business works as an internal part, guiding the business to the best innovation options. High Performance in Pharmaceuticals . The quickest way to achieve a more high-tech process in procurement outsourcing is digitisation; a modernisation that can aid pharma companies in their mission to achieve more productivity. Challenges. A good example of strategic purchasing of logistics services is horizontal collaboration. Visualizing your procurement process helps all stakeholders be aware of the many moving parts involved in making purchases and also helps identify potential issues and roadblocks. A large majority of spend in a pharma company goes to indirect spend categories such as IT, office supplies, travel, logistics, and marketing. Shorter is not always faster, and some trade lanes are safer than others for these kinds of products. Client background. Procurement not only enables to cut cost but […] Area of operation: Worldwide. In 2011, Baxter International Inc. started collaboration with UCB, a Belgium-based pharmaceutical manufacturer. See also: Top Gynaecology Solution Companies, I agree We use cookies on this website to enhance your user experience. Read more, Reinventing the procurement process of pharma logistics, http://www.supplychainquarterly.com/topics/Logistics/20131108-collaboration-without-borders/, https://blog.thesmartcube.com/item/ready-for-a-make-over-what-s-trending-in-the-global-pharma-logistics. Enhancement of the procurement process in pharma logistics can solve major roadblocks and improve business profitability. He has 24 years of experience in the areas of marketing and marketing procurement. Pharma manufacturing companies rely heavily on batch manufacturing and equipment is usually self-contained. We provide services to support you and your company in the detailed planning of the shipment set-up, as well as onsite delivery and pick-up. darling of Wall Street, delivering high margins and steady growth rates through long-held patents and innovative products. When it comes to modern procurement and digital technology, business has already enough top-performing industries representing myriads of booming startups and innumerable count of successful niche projects driven the way of development through innovation. We believe that our largest contribution to a sustainable world is helping our customers enable global access to life-saving pharmaceuticals, through patient-safe, reliable and efficient cold chain solutions. Companies of today are opting for better procurement management to save costs and remain competitive in the marketplace. SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on the imperative need of the procurement process in the pharma industry. The Belgian service provider, Tri-Vizor NV, analyzed the freight flows of the two companies, revealing that there was a considerable overlap between them and that the companies could benefit from shared transport[i]. As a charter member of the marketing procurement effort at Merck & co. inc., he led the areas of media, agencies, print, paper, and digital marketing procurement. The most obvious example is the increased use of sensors on packaging and containers that can monitor for example ambient temperature and humidity, and track events in near real-time. By ensuring spend control and collaboration across functions with their supplier network and internal stakeholders, pharma companies can create more opportunities for innovation. And as in every other business, the collection of large amounts of data and data analytics is starting to have a real impact on the logistics industry. Overall, one can see a very strong correlation between the two axes. • Procurement performance reflects quantitative results like spend control, savings, compliance and cost to procure. Employees: Over 9000. Products: Pharmaceuticals, personal care, animal health, nutrition and wellness, and baby care products. By clicking any link on this page you are giving your consent for us to set cookies. industry, essential drugs supply agencies and universities. How can the procurement process be adapted so that the quality requirements of the new drugs do not bloat the cost of transportation? IoT in Pharma Manufacturing Connected Equipment. Customers: Over 300 million. Procurement Process Flow. The whole process will have to happen much earlier with the development of partnerships with key logistics suppliers. Collaboration with external players, leveraging on their expertise, can also lead to advanced ways to procure pharma logistics. Procurement refers to the process of identifying, shortlisting, selecting, and acquiring suitable goods or services or works from a third-party vendor through a direct purchase, competitive bidding, or tendering process while ensuring timely delivery in the right quality and quantity. Improvement of the procurement process in pharma industry can solve such problems and improve the industry profitability. In order to maximise profit margins and improve efficiency to stay cost competitive, mapping out your procurement procedure can help your business identify key areas that may require automation or modification and, ultimately, improve performance. Pharmaceutical procurement occurs in many contexts. Read on to know more. Innovations in logistics can innovate the procurement process Similar to the pharmaceutical industry, innovation takes place also in logistics. Deese predicts e-trade exchanges will happen in the industry, albeit slower than most had originally predicted, and will transform relationships in the industry and beyond. for the pharma industry – procurement. The pharma industry itself necessitates this, as revenue streams constantly change, as products go off patent, and as mergers and acquisitions change business objectives. 3 Pharmaceutical manufacturing of finished goods is not an easy process. So, the procurement structure is very important in any organization. Envirotainer is the world leader in air-transportation solutions for temperature-sensitive pharmaceuticals. It is probably not a question of if, but rather when, and e-commerce logistics giants such as Amazon and Alibaba will launch home delivery of personalized medicines that will create pockets of opportunities for other nimble and innovative services to enter the market and fill demand. Instead of the company performing its own tests on the raw materials, it can rely on the test data from its suppliers (when quality and compliance are met), thereby saving the company weeks of manual labor, where previously the materials were sent to the lab for testing. The domain still remains the same - Sourcing & Procurement, however it … By enhancing the procurement process in the pharma industry with strict policies, proper tools, and offering full spend visibility, pharma companies can accelerate savings from indirect spending and strike a balance with regulatory compliance. Procurement is not merely a cost-cutting tool. Procedure: Product development process shall be handled in phases. With the patronage of its readers, Express Pharma has grown to become the No.1 Business News Magazine for the pharmaceutical industry. In accordance to Financial Rule 110.13 (a), the over-all responsibility for the acquisition and the procurement process of supplies, equipment and services are delegated to the Chief of the Procurement Section duly designated by the Registrar. Moreover, the benefits of achieving step-change improvements in TechOps procurement will extend beyond individual companies to the entire pharma industry and the health care ecosystem. Production or contract manufacturing often dominate procurement in pharmaceutical companies. Consequently, potential process and cost optimisation measures must first be examined for their influence on the quality and safety of the pharmaceutical product. [i] CSCMP’s Supply Chain Quarterly, Logistics, Collaboration without borders, James A. Cooke, from the Quarter 3 2013 issue, http://www.supplychainquarterly.com/topics/Logistics/20131108-collaboration-without-borders/, [ii] The Smart Cube, Ready for a Make Over: What’s Trending in the Global Pharma Logistics?, Sue Hope, https://blog.thesmartcube.com/item/ready-for-a-make-over-what-s-trending-in-the-global-pharma-logistics. For example, successful pharma businesses can create innovative incentive models for suppliers to suggest innovative ideas on ways to reach the new market through a new sales channel. At this juncture, a strategic procurement process will be much more than strategic purchasing. Although the operational principles presented here are in many respects applicable to all procurement settings and for most types of procurement situations, their primary target is With the growing number of sensitive drugs, how can procurement keep transport costs under control while still adhering to necessary quality requirements? Make it easy with Coupa pharma and life sciences procurement software. Innovation in Pharma industry does not concern only towards drug innovation. More info, Copyright © 2021 pharmatechoutlook.com All rights reserved. Big Pharma companies directly import or procure raw material from manufacturers. From raw material procurement to consumption by patient is challenging work. Deese believes, regardless of industry, the qualitative effects of e-enablement on the procurement process will be profound, including: Seamless, ease of use for the customer; Prepared using data from APQC’s Open Standards Benchmarking in procurement, this table highlights procurement benchmarks for organizations in the pharmaceutical industry. Here we present new options for supply chain procurement, with focus on long-term strategic purchasing. So we study the pharmaceutical industry and its procedure of procurement. Different companies have different mode of procurement procedures. Developing long-term collaboration with logistics stakeholders is another strategy for supply chain procurement, in order to increase efficiency and keep costs at acceptable levels. Pharmacy procurement is in charge of facilitating the procurement of medicines that meet prescribed safety and health standards at a cost-effective price. Partnerships with unexpected new players of pharmaceutical logistics services could innovate the procurement process and combine highly specialized medicines with low transport costs. Deese predicts e-trade exchanges will happen in the industry, albeit slower than most had originally predicted, and will transform relationships in the industry and beyond. Procurement Management Process - The 2021 Guide . Pharma companies that lead the way in initiating and scaling up a transformation will gain significant advantages in cost and risk management. But as pharma reinforces its commitment to outsourcing most non-core activities, the practice has the opportunity for leadership in making … I have moved from being in the client's seat dealing with raw material suppliers for the pharma industry to the opposite side of the table being a supplier of outsourcing services to pharmaceutical companies. Express Pharma, first published as Express Pharma Pulse in 1994, is today India’s leading business fortnightly for the pharmaceutical industry.