The biotechnology industry comprises hundreds of companies that fuse biology and technology to develop drugs and medications that treat various ailments. Today’s biotech industry consists of companies that develop medical devices and diagnostics, biomaterials, biofuels, pollution control, and similar materials.
According to research by the National Centre of Biotechnology Information, there’s a growing risk of corruption in the pharmaceutical procurement functions. In curtailing graft, anti-corruption measures, transparency, and accountability measures are viewed as potential solutions. NCBI highlights that the primary goal of the public procurement of pharmaceutical products is to purchase sufficient amounts of pharmaceutical drugs at cost-effective prices to the targeted population. However, this pursuit can be undercut if graft and corruption infiltrate the procurement process.
This is the reason biotech companies are turning to eProcurement. Also known as supplier exchange or electronic procurement, e-procurement is the process of purchasing and selling products, supplies, and services through a networked interface. E-procurement technology automates and centralizes interactions between departments, customers, and value chain partners to improve the speed, transparency, and efficiency of the procurement process.
So, biotech companies use e-procurement for the following reasons:
1. Operational Performance
There is a direct correlation between the operational performance of biotech companies and big pharma and the application of e-procurement practices. Evidence shows that the implementation of an e-procurement solution automates procurement functions, frees up employees to focus on other tasks, and achieves operational efficiency. Overall, the deployment of e-procurement functions provides operational efficiency and drives performance.
2. Procurement Planning
E-planning practices are widely implemented by pharmaceutical manufacturing firms. The e-procurement processes help pharmaceutical companies identify drugs that are needed at a particular point in time, and help in the distribution of drugs to warehouses. Therefore, as compared to the traditional paper-based planning process, e-procurement provides an automated, flexible, and speedy procurement process. E-procurement capabilities widely help in procurement planning, especially in drug selection, sourcing, warehousing, and distribution.
3. Automates Laborious Tasks
The biotech industry is roped with laborious orders including product manufacturing, testing, and development of new diagnostic products. In developing and distributing medical and pharmaceutical products, biotech companies engage in tasks such as auctioning orders and document management for evaluating and selecting suppliers. Therefore, e-procurement solutions automate laborious tasks such as price negotiations, evaluation, and supplier selection and increase the speed through which companies do business.
4. Visibility into Purchasing Behaviors
As manufacturers of medical and diagnostic devices, biomaterials, and biofuels, biotech companies demand crucial resource inputs. E-procurement offers biotech companies visibility into what it spends regularly. This visibility data is invaluable, and it helps biotech companies control things like maverick spending, non-compliance and identify areas of consolidation with suppliers. E-procurement enables biotech companies to leverage their buying power by negotiating cost savings.
5. Improved Workflows
E-procurement enables decentralization through the end-user self-service with control through the company-controlled catalogs. In addition, e-procurement solutions provide frictionless processing of requisition (ordering of goods and services) and timely supplier payments. So, electronic procurement improves the workflow, providing efficiency and productivity in complex biotech processes.
6. Connecting to External ERPs and Supply Chains
With e-procurement, real-time information can be shared among departments and supply chains for better visibility of supplier transactions and supplier information. E-procurement systems from trusted vendors are interoperable, implying they integrate seamlessly with existing business applications: ERP, QuickBooks, NetSuite, and CRM software.
7. Supplier Selection
Despite the growing significance of an electronic procurement system, most biotechnology players have not established strategies for the assimilation of e-procurement process management. E-procurement solutions enable biotechnology companies to identify a pool of qualified suppliers and select suppliers for various products and services.
8. Successful Order Tracking
Technology has brought about substantial benefits to organizations that practice e-tendering. E-procurement solutions result in firms successfully tracking orders and making corrections in case of errors. Other than preventing errors, e-procurement solutions cross-check approvals to ensure they match with other procurement documents. So, the three-way matching is a fool-proof model of e-procurement.
E-procurement saves biotech money by preventing duplicate spending, leveraging volume purchases, and saving costs associated with paper-based systems, for example, the cost of stamps to mail your procurement paperwork. In addition, e-procurement can save you money associated with employees and overhead costs. Automating processes saves organizations substantial costs that positively impact the bottom line.
There are many other reasons biotech companies use e-procurement. These include:
- E-procurement automates processes, thus freeing up space and resources and reducing errors.
- E-procurement improves communication between partners and stakeholders and streamlines the procurement cycle.
- Provides a single, central platform for all procurement activity, giving managers and stakeholders a centralized platform for managing and auditing.
- Offers real-time updates to managers, vendors, partners, and other stakeholders. It provides them the chance to curate and store procurement data.
- Allows for streamlined negotiations between multiple partners and stakeholders.
ProcurePort – Biotech Leading E-Procurement Solution Partner
ProcurePort believes that competitive advantage hinges on your ability to innovate. Forward-looking and fast-thinking biotech companies are improving strategic sourcing in the supply chain to reduce the time and cost of procurement planning and management. ProcurePort’s procurement software for biotech helps companies optimize their operations and achieve operational efficiency. ProcurePort’s procurement software for biotech provides flexibility and agility to effectively:
- Optimize procurement operations
- Coordinate with third-party supply chain partners
- Address emerging market trends and needs
Contact ProcurePort for biotech and big pharma e-procurement solutions.