You have innovative lab supplies, great customer service, and competitive pricing, but when you try to sell to a new lab, you hear, “Sorry, you’re not on our preferred supplier list.” Unfortunately getting on said list is not so easy. Securing a special spot with biopharma, life sciences, and R&D organizations takes a serious investment of time and money, with no guarantees of success or even increased business. As the industry shifts toward vendor consolidation, lab supply marketplaces are becoming an essential channel for quality suppliers to reach new customers in a cost-effective, strategic way.
Read more: A Guide to Life Science Supplier Marketing
The benefits of being on a lab’s preferred supplier list
A preferred supplier is a vendor that an organization has vetted and selected as a primary source for purchasing lab supplies. These suppliers meet specific criteria related to pricing, reliability, quality, and service. Many biopharma and life sciences companies maintain a preferred supplier list (also known as a preferred vendor list or approved supplier/vendor list) to streamline procurement and improve efficiency.
Life sciences procurement teams then encourage purchasing end users, such as scientists and lab operations, to source their research needs from vendors on the list. In labs using a procure-to-pay (P2P) platform, suppliers may have a punchout catalog integrated into the system. Scientists may also encounter fewer administrative hurdles when purchasing from preferred suppliers.
Benefits of becoming a preferred supplier:
- Consistent business. Preferred suppliers may be more likely to receive repeat orders from organizations.
- Stronger relationships. Being a preferred supplier may lead to a longer-term partnership with procurement teams and researchers.
- Simplified sales process. Once approved, suppliers bypass extensive vendor selection steps for future purchases.
- Greater spend visibility. Procurement aims to consolidate spending with preferred suppliers, leading to larger order volumes over time.
- Competitive advantage. Being listed as a preferred supplier helps differentiate your brand from competitors.
Hurdles for lab suppliers seeking preferred status
The journey to becoming a preferred supplier is complex and often frustrating. Some of the biggest hurdles include:
- Lengthy approval processes. Suppliers must navigate multiple rounds of RFIs (Requests for Information), RFQs (Requests for Quote), and contract negotiations. The selection process can take months or even years.
- Strict compliance and documentation requirements. Organizations often require extensive documentation, including regulatory compliance, quality assurance certifications, and financial stability reports. For instance, MIT’s procurement office outlines detailed requirements that vendors must meet before being added to their approved supplier list.
- Price pressures. Large organizations negotiate aggressively, often driving down margins.
- Uncertain purchase volume. Even after approval, there’s no guarantee that researchers and lab teams will consistently choose your products.
- Limited access to decision-makers. Procurement teams manage vendor relationships, but end users (scientists and researchers) often influence purchasing decisions.
- Complex onboarding and integration. Suppliers must integrate into a company’s P2P system, which can be time-consuming and resource-intensive.
Even after making it onto the preferred supplier list for lab supplies, there’s no guarantee that stakeholders will purchase enough of your products to justify the investment.
Read more: The Challenge of Juggling Multiple PunchOut Catalogs for Labs
Procurement and preferred supplier strategy in life sciences
Procurement teams in the life sciences industry face unique challenges when selecting preferred suppliers. Unlike traditional industries where cost savings drive decisions, life sciences procurement must balance:
- Cost control vs. innovation. Labs need access to cutting-edge products, which can conflict with procurement’s goal of consolidating vendors for cost efficiency.
- Regulatory compliance. Suppliers must adhere to strict industry regulations and quality standards.
- Supply chain resilience. The COVID-19 pandemic highlighted the risks of over-reliance on a small pool of suppliers. Diversification is key.
- End-user preferences. Scientists and lab managers often have strong preferences for specific brands and products, making consolidation efforts challenging.
Procurement and R&D teams often have competing priorities. While labs require supplier flexibility to drive scientific innovation, procurement focuses on vendor consolidation for cost control and efficiency. A ZAGENO survey found that biopharma R&D teams add up to 50% new suppliers per year to support innovation and address supply chain disruptions. However, integrating new suppliers into a P2P system is a complex and time-consuming task for both procurement and vendors.
Read more: Top Procurement Platforms for the Life Sciences Industry
A smarter path to becoming a preferred supplier
What if you could become a preferred lab supplier for thousands of customers, without undergoing thousands of supplier selection processes?
A digital lab supply marketplace like ZAGENO eliminates these barriers. Scientists can access a catalog of over 40 million product SKUs from over 5,300 suppliers, all under a single, streamlined purchasing experience. ZAGENO simplifies procurement by acting as the vendor of record, consolidating orders and invoicing for lab supplies.
Benefits of selling on a digital lab supply marketplace
Partnering with ZAGENO as a supplier offers key advantages:
- Instant access to thousands of researchers actively searching for lab products, via a single punchout.
- Supplier-agnostic, AI-driven search, in which scientists are easily able to find the best product for their needs, without marketing influence.
- Automated order inflow, reducing administrative workload.
- Real-time analytics to track sales performance and trends.
- Full brand control to maintain visibility and product positioning.
- Simplified catalog management, ensuring accurate pricing and product availability.
- Seamless invoice processing, eliminating payment delays and manual invoicing.
Why a digital marketplace is the future of lab supply sales
Whether you’re a niche supplier or an industry leader, ZAGENO helps you maximize your reach with no upfront investment. Even less-popular life science products become profitable by eliminating the traditional sales and marketing overhead.
In today’s world, purchasing lab supplies is more complex than ever for scientists. By leveraging a digital marketplace, suppliers can experience the benefits of being on a preferred supplier list for lab supplies, without the extensive hurdles of traditional procurement processes.
Ready to scale your lab supply business? Explore how ZAGENO can help you be one click away with thousands of researchers.
