Procurement Strategy: Defining a Procurement Roadmap for a Biotech Start-up with a Virtual Business Model

Situation

• A new pharma/biotech with a focus on neuroscience was started with venture backing from a leading Private Equity firm and a top 10 large Pharma company
• Based on a “virtual business model” with heavy reliance on CROs and other external providers, the company had started to enter into initial agreements with core supplier but no formal procurement organization, processes or modus operandi were in place

Solution

• Interviewed key stakeholders and analyzed key metrics and business drivers to define future procurement organization and needs
• Defined clear processes, RACI, decision authority levels and recommended resourcing and organizational set-up for three-time horizons (in 3 months, 9 months, 24 months)
• Proposed key tools (e.g. contract management tool) to efficiently manage the process

Impact

• Alignment from all stakeholders on key decisions (hiring, reporting, processes, etc.)
• Tactical recommendations on ways to establish Procurement as a business partner with scientific experts/buyers
• Clear visibility and checklist for action items that need to be completed in 3, 6, 9 months