Pharmaceuticals, Health & Life Sciences

Pharmaceutical and life science organizations face a dynamic future being shaped by several strategic pressures and opportunities. Increasing regulation, payer restrictions on pricing and reimbursement, the need to innovate to address competition and expiring patents are some of the significant challenges. On the other hand, globalization, emerging markets, new advances in technologies and science, and aging populations represent distinct opportunities. The net-net of these factors are that companies in the healthcare industry will increasingly find that they must transform their product portfolios and how they operate while increasing efficiency.

GEP offers a powerful suite of services focused on helping pharmaceutical and life science companies achieve mission-critical improvements in purchasing and their supply chains. This includes improved spend analysis and purchasing data, use of procurement technology and strategic sourcing.

Furthermore, GEP's procurement outsourcing solutions can be deployed by life science companies to quickly address their core business and achieve operational efficiencies.

The improvements in way of cost savings and efficiency derived from effective use of these purchasing tools and strategies are substantial. Moreover, they are an effective means for fueling investments, innovation, or buoying and shrinking margins. Life science companies that embrace and harness best practice supply chain solutions, including procurement outsourcing, can quickly gain a competitive advantage in this dynamic and challenging global marketplace. GEP's expertise and experience offers life science companies a key partner to achieve this objective.

GEP | Pharmaceutical & Biotech

Many trends are shaping the future of the pharmaceutical industry. An aging population in developed countries, emergence of new markets, and the development of new therapeutic applications are creating opportunities for growth. On the other hand expiring patents, increased payer involvement in controlling pricing and greater regulatory restrictions are few of the many challenges pharmaceutical companies face today. The net effect of these trends is leading many large and mid-sized pharmaceutical companies to refocus on their core business and re-evaluate how they approach R&D, sales and marketing, and their product portfolios.

In this business environment, creating efficient operations and capitalizing on cost savings are a distinct competitive opportunity. Indeed, over the past 20 years, pharmaceutical companies have found efficiencies and savings in their procurement operations through a variety of methods. Outsourcing of internal Procure-to-Pay (P2P) processes and a greater emphasis on strategic sourcing are just two ways in which Pharmaceutical companies have been using internal procurement operations to impact the bottom line. Whether your company is a large-sized pharmaceutical looking to enhance its procurement operations or a mid-sized pharmaceutical looking to implement world-class sourcing strategies, GEP solutions can help.

GEP addresses these challenges by:

  • Working closer with top suppliers
  • Maximizing return on material and service investments
  • Developing consistent data tracking

GEP | Medical Devices & Technology

The medical devices and technologies companies are rapidly adapting to the globalized market. In order to remain competitive, companies must produce high quality/zero defect goods, while simultaneously increasing their emphasis on new product innovation. At the same time, globalization presents companies with diverse challenges such as increased government regulations, price control issues and concerns over intellectual property protection. In spite of these challenges, there are many areas of potential growth for these industries; globalization and advances in technology have opened doors to new markets, while an aging population across the globe ensures the future need for medical technology.

Many of the strategic issues in this market tie directly to supply chain considerations. To operate, medical device companies rely on high-quality, validated suppliers, including outsourced or integrated development partners. However, there is a continual need to develop new sources for the purpose of innovation, risk management, and cost control. Supply chain dynamics and requirements are similarly driven by ongoing expansion into more markets and new technologies. In this landscape, GEP can help medical devices companies improve aspects of purchasing, capture cost savings, manage tail-spend and achieve business process efficiencies through methods such as strategic sourcing, increased visibility into spend data and outsourcing components of the Procure-to-Pay (P2P) process.

GEP addresses these challenges by:

  • Focusing on core business processes
  • Reducing time-to-value on investments
  • Tracking savings compliance

GEP | Hospitals & Health Systems

Hospitals and health systems face a number of key challenges in today’s market. In the United States, an aging population, coupled with changes to both Medicare and Medicaid, is forcing health care organizations to provide services to a growing number of patients. Moreover, there are increasing pressures on costs and reimbursement for care from payers, including governments and managed care providers. A profound example of this phenomenon is the shift towards “value-based purchasing” in which hospitals have reimbursements and revenue streams tied to the quality of care they provide. Ultimately, these market factors simply mean that health systems must improve the quality of care to a greater number of patients while an reducing costs.

While challenging, health organizations must view the current landscape as an opportunity to capture savings and implement organizational efficiencies. One key way to accomplish this is by focusing on supply chain and purchasing activities. GEP helps clients develop cross-functional sourcing teams that help eliminate the common fragmentation found in suppliers across various departments and units. Moreover, our procurement technology and procurement outsourcing solutions help hospital systems develop lean and cost-effective procurement infrastructure.

GEP addresses these challenges by:

  • Developing a leaner procurement cycle
  • Easily identifying supply needs
  • Maximizing saving opportunities

GEP | Healthcare Products | OTC Products:

Healthcare product companies are like pharmaceuticals as they share similar opportunities to improve purchasing practices. Yet, unlike pharmaceutical companies, given their lower margins and the competitive pressure, healthcare product companies face even greater pressure to capture costs savings and develop business efficiencies. These companies can rapidly benefit by applying strategic sourcing principles across their spend bases. Moreover, the use of good purchase data and procurement software can help healthcare product companies gain maximum value from purchasing investments.

Pharmacy Benefits Management (PBM):

In this high-volume, low-margin market, it is critical for companies to both ensure zero-defect customer servicing while also capturing cost and operational efficiencies. In order to remain competitive, PBMs must place a strong emphasis on purchasing. To build a strong procurement infrastructure, PBMs can pursue a variety of options including better eProcurement tools and outsourcing parts of their Procure-to-Pay (P2P) process. Both options lead to stronger data collection and increased process efficiencies. Despite the vast opportunities, these approaches have been utilized minimally in the market even while PBMs face a variety of administratively intensive purchasing requirements.

GEP addresses these challenges by:

  • Increasing collaboration with top suppliers
  • Implementing a long-term supply chain strategy
  • Analyzing spend effectively

 

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