Life Science R&D procurement is in a constant tug of a war between supplier consolidation and scientific choice. The goal is supply chain continuity while maintaining supplier quality and spend oversight in the face of a growing longtail. While there’s no instant fix, procurement digitalization via procure-to-pay (P2P) and/or source-to-pay (S2P) systems can help procurement find some much-needed balance.
7 Benefits of Digital Procurement for Life Science R&D Labs
| 1. | Saves time for the lab and procurement by cutting down on manual processes. |
| 2. | A better end-user experience for scientists and procurement. |
| 3. | Enhanced procurement spend oversight. |
| 4. | Improved cost savings. |
| 5. | Increased scientific supplier choice via use of PunchOut catalogs. |
| 6. | Easier order tracking. |
| 7. | Integration with ERP systems. |
Life sciences industry trends show that lab supply backorder rates and lead times significantly increased between 2019 and 2021, with biopharma R&D teams adding up to 50% new suppliers in 2021. It’s clear that extenuating circumstances are making it harder for procurement and the lab to do their jobs.
Procurement automation can alleviate some of this pressure, but not all. Many biopharma organizations are turning to an eCommerce marketplace, such as ZAGENO, along with their P2P or S2P system, to make the purchasing process as Amazon-like as possible.
8 Enhanced Benefits of Utilizing An eCommerce Marketplace
| 1. | Reduction of supply chain risk via access to qualified, in-stock alternatives in the face of backorders. Order tracking and returns accessible with a single log-in. |
| 2. | Out-of-the-box software easily syncs with ERP, P2P, and accounting systems. |
| 3. | Tail spend discounts eliminate need to negotiate with longtail suppliers. |
| 4. | Automated RFP, purchase order generation, and approval flows, all documented for audit. |
| 5. | Real-time spend data, plus actionable analytics dashboards for spend visibility and expense management. |
| 6. | Enhanced scientific choice. With ZAGENO, scientists can build a cart from over 30m+ product SKUs across 5K, rated according to ZAGENO’s comprehensive, unbiased Scientific Score rating. |
| 7. | Streamlined invoicing with one invoice for all lab supplies each month, with ZAGENO as vendor of record. |
| 8. | Better supplier relationship management, due to accessible data on supplier quality, delivery, and pricing. |
R&D procurement can’t please all of the people all of the time. However, with a strategy that includes digital procurement alongside an eCommerce marketplace, procurement/sourcing teams can find that much needed balance, all while allowing for that oh-so-important scalability.
