The way pharmaceutical procurement works is changing.
Finding pharmaceutical ingredients, APIs, nutraceutical products, and specialty chemicals a few years ago was often a matter of existing supplier networks, trade shows, or a string of emails. Today, the buyers can find suppliers, compare the products, request quotations and interact with manufacturers using digital platforms from all over the world.
There can be no denying about the convenience.
The procurement of pharmaceutical products is not the same as ordering office supplies or equipment over the Internet. Each transaction may affect the quality of the product and even patient safety in the end.
That's why savvy procurement professionals are cautious when sourcing online.
When planning to buy a pharma & nutraceutical product online via a trusted B2B marketplace, there are some important things to grasp before you place your place order.
Digital procurement has revolutionized all segments of industry, and the pharmaceutical industry is no different.
Today's procurement teams are challenged to locate a reliable supplier more quickly, compare the sourcing options in an efficient manner, and minimize sourcing delays.
Online sourcing platforms are a solution to these challenges by offering access to a wider supplier base and centralised procurement solutions.
Buyers can often find sourcing options within hours, as opposed to weeks, that they are searching for potential suppliers.
The best things about some of these are:
These advantages can help shorten procurement cycles, particularly within companies that are involved in multiple sourcing projects.
But convenience should not be a substitute for appropriate due diligence.
Buyers often make the error of believing that all items on-line suppliers are of equal quality.
The truth is that there are different suppliers with different quality systems, manufacturing capabilities, documentation systems, and experience in the industry.
A well-done profile isn't necessarily reliable.
That's why supplier verification continues to be one of the most crucial actions in pharmaceutical procurement.
Prior to contacting a supplier, buyers should know:
The objective is not to merely locate somebody who can provide a product.
The aim is to find a supplier who can provide the right quality, fit and fulfilment every time.
It is easy to see that price is one factor that is more widely discussed in sourcing.
However, documentation is a much better indicator of supplier reliability for the experienced buyers.
Buyers should request and examine the relevant documentation prior to the purchase of pharmaceutical or nutraceutical products.
This may include:
These documents are useful to buyers to understand what they are buying and if it meets the buyer's quality requirement.
In the end a lower cost vendor who can't document everything would end up causing more problems than saving money.
The ideal sourcing decisions are a mix of cost and quality.
Transparency has emerged as a big issue for the pharmaceutical buy.
There is increasing buyer pressure to provide visibility into supplier processes, quality of products, production capacity and sources.
The harder it becomes to find information, the greater the procurement risks become.
Generally, transparent suppliers are more willing to share:
This transparency can aid procurement making decisions, and strengthening supplier relationships.
Having information readily available makes it easier to build trust.
When looking to purchase online, it's important to find out the traceability of the product.
It is critical to know the source and manufacturing process of a material in a pharmaceutical and nutraceutical supply chain.
Traceability helps organizations:
Buyers might not consider traceability during the initial sourcing phase, but when quality issues arise later it is very beneficial.
The better the traceability process, the better it will be to investigate and solve problems.
Many buyers think that the process of sourcing nutraceuticals is easier than pharmaceuticals.
Supplier evaluation is as relevant as regulatory requirements, although this may vary.
Sourcing botanicals, vitamins, amino acids, proteins and specialty ingredients should not be overlooked, even by the buyer:
The booming business of nutraceuticals has generated new sourcing opportunities—and a greater number of competitors for sources.
Formal supplier assessment enables buyers to select suppliers who will be able to meet the buyer's longer term sourcing requirements.
With the exception of pharmaceuticals, generic B2B marketplaces can be helpful for a lot of industries but they may not be as suitable for pharmaceuticals.
Typical needs of pharmaceutical buyers include:
There are specialist markets that cater to these needs.
These platforms target pharmaceutical, chemical and nutraceutical sourcing, instead of forcing buyers to browse through non-related product categories.
This makes the task of discovering suppliers much easier.
Possessing tools tailored specifically for the industry will save a lot of time and effort on the part of buyers engaged in many sourcing projects.
Prior to buy pharma & nutraceutical products online, it's essential to consider a few questions:
Know whom you are purchasing from and check out the information that is provided in the supplier.
Make sure appropriate quality and product documentation is provided.
Establish that the product is technically and quality satisfactory.
Comparisons can be useful in terms of market understanding.
A good supplier base is generally indicated by good communication.
The following are a few easy steps that can help mitigate sourcing risks and enhance procurement results.
One of the most significant challenges in pharmaceutical procurement is to find reliable suppliers.
To help address this challenge, ChemDmart was developed to help match buyers with suppliers from pharmaceutical, chemical, biotech, and nutraceutical companies.
ChemDmart is a specialized B2B marketplace that assists procurement professionals in many ways:
Buyers can turn to a centralised industry sourcing solution rather than the usual disjointed lines.
It could be that companies are looking for APIs, pharmaceutical raw materials, specialty chemicals or nutraceutical ingredients, and having verified supplier information can help them make more informed sourcing decisions.
There are many benefits of an online pharma and nutraceutical procurement.
Digital sourcing platforms can improve the supplier discovery process, comparison process and the management of supplier procurement.
But convenience is not the only requirement to be successful in sourcing.
Supplier verification and documentation review, transparency and traceability, are still important components of procurement.
Online sourcing can be a very successful method for sourcing, when buyers are as diligent as they would be in considering any critical supplier relationship.
Even though technology may assist greatly in making the procurement process efficient, successful pharmaceutical sourcing is also based on good decision making.
