What defines an R&D procurement hero? Their mission is to make life easier for the scientists they support. They focus not only on cost reduction, but on value creation, innovation, and sustainability. They curate a strategic collection of technology tools that enable scalability and agility. An R&D procurement hero knows that building the right tech stack is the key to unlocking the full power of digital procurement.
What is digital procurement?
Digital procurement utilizes solutions like procure-to-pay (P2P) platforms, online marketplaces, automation, and data analytics to streamline and optimize the purchasing process. Its real power lies in strategically integrating these elements to build a tech stack that streamlines the lab supply purchasing process and accelerates discovery.
How do you build a scalable tech stack?
For our purposes, a tech stack refers to a set of software technologies and platforms used together to build and operate a specific process; in this case, the procurement process. When starting out, many biotechs create homegrown applications to handle the management of accounting, procurement, and other back-end functions. However, these homegrown tools often break in the face of growth.
The goal is to “stack” a collection of software platforms that prioritize integration and scalability. Factors to consider include the platform’s ability to easily add end users, handle increased order volumes, support multiple sites, integrate with other tools, and other inputs that ebb and flow. By doing so, you can create a robust R&D ecosystem capable of dynamically supporting innovation and growth.
What is a procure-to-pay (P2P) platform?
Procure-to-pay (P2P) platforms, a major component of a scalable tech stack, aim to automate the entire procurement process, from requisitioning to payment, consolidating purchasing, accounts payable, and supplier management. Examples of P2P platforms serving the life sciences industry are Coupa, SAP Ariba, Jaggaer, Procurify, Point Purchasing, Accrualify, and Tungsten Network.
7 benefits of P2P for R&D
There are many benefits of implementing P2P in the R&D procurement process, including:
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Increased efficiency
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Enhanced spend visibility
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Simplified compliance
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Improved supplier collaboration
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Tighter cost control
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Enhanced data analytics
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Easier auditing and reporting
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Complexities of the R&D space impacting P2P implementation effectiveness
While the benefits of P2P are evident, the uniqueness of the R&D space can pose barriers to full automation and even serve to worsen the end user experience. Many procurement professionals implement P2P, only to be disappointed when automation hits a wall.
Go deeper: Procure-to-Pay (P2P) is not a Silver Bullet for R&D Lab Supplies
Limitations of P2P for R&D Lab Supply Procurement
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R&D Complexity
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P2P Limitation
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Specialized research needs
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R&D projects often involve unique or specialized products that may not be readily available from preferred suppliers or existing PunchOut catalogs.
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Flexibility constraints
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P2P platforms may struggle to adapt to the dynamic nature of R&D, such as project scope changes or backorder issues.
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Technical specifications
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Lab supplies must meet precise technical specifications and quality standards to align with experiments and research protocols, adding to complexity.
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Research timelines
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R&D projects are often time-sensitive, with tight deadlines for obtaining supplies and conducting experiments, requiring efficient procurement processes to avoid delays and meet project milestones.
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Budget constraints
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R&D budgets may be limited or subject to fluctuations, requiring careful cost management and strategic procurement to optimize spend while still acquiring necessary supplies and equipment.
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Emerging technologies
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Rapid advancements in technology and scientific research may require R&D labs to continually evaluate and adopt new lab supplies and equipment.
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The secret to fully realizing the benefits of digital procurement for R&D
Despite the complexities of the R&D space, there is a simple solution to overcome the challenges of P2P implementation and fully realize the benefits of digital procurement for life sciences — complement your P2P platform with access to an online, lab supply marketplace.
What is a lab supply marketplace?
A lab supply marketplace is an online platform offering a wide range of products tailored to the needs of R&D professionals designed to maximize research potential and reduce administrative burden. The leading lab supply marketplace, ZAGENO, serves as the Amazon of the life sciences industry, offering 40 million+ different product SKUs from 5,300+ global brands, automated order tracking, and consolidated invoicing.
How a lab supply marketplace enhances the procurement process
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R&D Complexity
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P2P Limitation
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ZAGENO Lab Supply Marketplace Solution
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Specialized research needs
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R&D projects often involve unique or specialized products that may not be readily available from preferred suppliers or existing PunchOut catalogs.
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Enhanced product choice of 40+ million items, aided by AI-driven product discovery and qualification tools. New suppliers added within 1-2 days by top-rated customer service team.
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Flexibility constraints
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P2P platforms may struggle to adapt to the dynamic nature of R&D, such as project scope changes or backorder issues.
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AI-aided identification of qualified, in-stock alternatives in the face of backorders. Automated RFQ features. Customer service support for quotes and order changes.
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Technical specifications
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Lab supplies must meet precise technical specifications and quality standards to align with experiments and research protocols, adding to complexity.
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Users can quickly confirm product suitability with AI-driven gathering of essential documents like Safety Data Sheets and Certificates of Analysis.
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Research timelines
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R&D projects are often time-sensitive, with tight deadlines for obtaining supplies and conducting experiments, requiring efficient procurement processes to avoid delays and meet project milestones.
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Shortens procurement cycle time with automated RFP, purchase order generation, custom approval flows, AI-driven predicted ship date, automated order and delivery tracking, and automated 3-way match.
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Budget constraints
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R&D budgets may be limited or subject to fluctuations, requiring careful cost management and strategic procurement to optimize spend while still acquiring necessary supplies and equipment.
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Promotes transparency and competitive pricing with supplier-agnostic search and multiple buying channels for the same product.
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Emerging technologies
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Rapid advancements in technology and scientific research may require R&D labs to continually evaluate and adopt new lab supplies and equipment.
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Actively recruits new and innovative supplier partners. Customer service team adds new suppliers and products within 1-2 days.
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Go deeper: Free eBook - 6 Key Lab Supply Purchasing Pains and Solutions
How ZAGENO can help
Become a procurement hero by fully unlocking the power of digital procurement with a scalable tech stack. Contact ZAGENO today for instant access to the industry’s leading AI lab supply marketplace.
