Amidst the challenges posed by the COVID-19 pandemic, regulatory pressures, and intensifying competition, procurement in the pharmaceutical industry emerges as a vital driver of success. By strategically managing their supply chains, implementing cost reduction initiatives, and fostering collaborative partnerships with suppliers, pharmaceutical companies can navigate these hurdles effectively. With procurement at the forefront, the industry ensures supply chain resilience and thrives in a dynamic and evolving landscape.

According to a report by McKinsey, the pharmaceutical industry has the potential to achieve significant cost savings by digitizing procurement processes. The report suggests that companies can achieve savings of up to 25% of their procurement spend by implementing eSourcing, contract management, and eProcurement platforms.  

The 2021 Global Chief Procurement Officer Survey by Deloitte found that 57% of procurement leaders believe that technology will play a significant role in their procurement strategies in the next two years. Furthermore, the survey notes that eProcurement tools and supplier relationship management tools are among the top investment priorities for procurement organizations. This suggests that pharmaceutical companies can leverage digital procurement tools to improve their procurement practices and drive cost savings. 

The examples below illustrate the growing significance of procurement in the pharmaceutical industry, as digital tools play a pivotal role in enhancing procurement practices and achieving cost savings.

• Pfizer, a leading global pharmaceutical company, is a prime example of a company that has invested heavily in digital procurement tools. Pfizer has implemented an eSourcing platform that enables the company to streamline its procurement processes, reduce costs, and improve supplier collaboration. By leveraging this platform, Pfizer has achieved a 30% reduction in procurement cycle times and significant cost savings. 
• Novo Nordisk, a Danish multinational pharmaceutical company, has also invested in digital procurement tools. The company has implemented a contract management platform that enables it to manage its procurement contracts more effectively. This platform has helped Novo Nordisk to achieve greater contract compliance, reduce risk, and improve supplier collaboration. 
• Roche, a Swiss multinational pharmaceutical company, has implemented an eProcurement platform that enables the company to manage its procurement processes more efficiently. By using this platform, Roche has achieved a 50% reduction in procurement cycle times and significant cost savings. 
• GlaxoSmithKline (GSK), a British multinational pharmaceutical company, has implemented a global procurement system that enables the company to manage its procurement processes more effectively. This system provides GSK with a centralized platform for strategic supplier management, purchase orders, and invoices. By leveraging this platform, GSK has achieved significant cost savings and improved supplier collaboration. 
• Merck & Co., Inc, a leading pharmaceutical company, has implemented an eSourcing platform to manage its procurement processes. The platform provides a centralized system for managing supplier relationships, contract negotiations, and purchase orders. By leveraging this platform, Merck has improved supplier collaboration, reduced procurement cycle times, and achieved cost savings. 
• Bristol Myers Squibb, a global biopharmaceutical company, has implemented a contract management platform to manage its procurement contracts. The platform provides a centralized system for managing contract templates, approvals, and renewals. By using this platform, Bristol Myers Squibb has achieved greater contract compliance, improved risk management, and enhanced supplier collaboration. 
• Eli Lilly and Company, a multinational pharmaceutical company, has implemented an eProcurement platform to manage its procurement processes. The platform provides a centralized system for managing supplier relationships, purchase orders, and invoices. By using this platform, Eli Lilly has improved procurement efficiency, reduced costs, and enhanced supplier collaboration. 

The adoption of eProcurement, SRM, contract management, and procurement analytics tools can help pharmaceutical companies manage their supply chains more effectively, reduce costs, and enhance supplier collaboration 

In conclusion, the ability of the pharmaceutical industry to remain competitive relies on embracing digital transformation and leveraging state-of-the-art procurement tools specifically designed for procurement in the pharmaceutical industry.

FactWise is a unified E-procurement platform with a fully integrated suite of procurement products. Our modular, extensible source-to-pay solution is flexible: it is applicable across industries and can be adapted to diverse procurement organizational setups. The platform is used by global product manufacturing companies to transform their procurement organization via analytics and automation to reduce costs, improve supplier diversity and strengthen supplier relationships, mitigate risk, meet ESG goals and standards, and increase compliance and efficiency.  

At FactWise, we are committed to building truly distinctive procurement software solutions that delights users and provide sustainable positive impact to the organizations we serve. We do this by providing transparency and insights to leaders (31% increase in governance), streamlining and automating processes to improve efficiency (20% increase in efficiency) and driving bottom-line impact by unlocking savings potential (25% cost reduction for direct spend).