Pharmaceuticals lobbyists are touring the media studios, and demanding more public funding for UK university research in order to avoid budget cuts in the Autumn spending review. Whilst pharmaceuticals funding is mission critical, it’s a great British industry, and one we should be proud of, I believe this approach misses a bigger opportunity.
The potential cuts to the sector are troubling: the business department has suggested cuts of 25-40% to the treasury, the treasury which provides £4.6 billion a year of science spending through the research councils, and £500 million through the technology support agency, Innovate UK. So the need to address these cuts is pressing, but the current solution, of demanding more public funding, is not effective, especially considering the Conservative government has made no current commitments to protect the science industry from cuts. Perhaps the campaign will deliver a few extra percentage points of investment, but it’s a temporary solution at best. The bigger opportunity lies in working more effectively with the sector. Not only is this a long-term solution, it also has the potential to drive 10x in value from pharmaceuticals relationships.
10x more value sounds great! But can it actually be achieved? The answer is a resounding yes, and guess what? The solution is simple: proper supplier relationship management. Giving universities structured guidance on which market opportunities to focus their efforts on. Creating timely and agile engagement between universities and R&D functions to bring forward new compounds and technologies to the developments stage. Proactive, transparent planning with Clinical Research Organisations to progress opportunities through development. These are all ways to unlock previously untapped value.
One CRO informed us that 40% of the cost from their service is from poor communication with, and planning of, a Pharmaceutical client. Think about it, 40% of CRO development expenditure gone. Washed down the drain by something which can be simplified. This is money which would be better off invested in efficient development. It could be used to find opportunities which create more value for the pharmaceutical industry, and for society as a whole…
It all sounds really complicated! How can we implement effective supplier management for such complex supply chains? Well, we’ve developed Vizibl, an SRM software hub, to manage all the complexity of performance and risk management, communication and collaboration. All in one simple hub. We’ve got great traction in the pharmaceuticals sector, and we’re confident we can deliver 10x more value than the current solutions being bandied around.
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