Procurement an Important Factor for Pharmaceutical API & intermediates Sourcing companies
Procurement teams are often the un-renowned heroes of Pharmaceutical sourcing and supplying businesses worldwide. To many top-line focused chief executives of Pharma companies, spending money isn’t easy at all. They want to show revenue and growth to investors, and the procurement teams don’t seem to play into that picture well. But this is a misconception.
Well run Pharmaceutical organizations, a procurement team delivers real bottom line benefits, especially if the business involves direct material purchasing and sourcing from several different sources.
Purchasing and procurement teams of these pharmaceutical raw material sourcing and supplying companies have three main functions:
1. Financial
2. Compliance
3. Relationship building (Strategic flexibility in supply chains)
Thus, procurement teams of these pharma bulk raw material companies deliver strategic value through six ways:
- Ensuring good value for money (and ROI) in spending.
- Ensuring good cash flow through control of payment terms.
- Building strong relationships with important suppliers and manufacturers of these API and Intermediate molecules.
- Building good reputations with supplier groups in order to create better contract terms.
- Enforcing actual delivery of deliverables from outsourced partners.
- Mediating disputes and ensuring vendor compliance with terms.
The important distinction is to realise that procurement teams deliver different types of value depending on the nature of the business of pharmaceutical sourcing, supplying and distribution companies.
