With more than 30% of the pharmaceutical market now utilizing, a significant portion of the Life Sciences industry’s revenue is being subjected to tendering. It’s hard to think of a more imperative way to see, the time is now to adapt and master tendering. The tendering process can be divided into 5 essential phases: Awareness, Evaluation, Response, Fulfillment, and Tracking. All phases are important, but the emphasis of this post will be on the first phase: Awareness.
Awareness focuses on all tasks related to tender identification and tender planning. Thus, it consists of the steps and capabilities required to correctly identify the tenders that are coming and prepare the organization to respond to them.
An essential tool linked to this phase is a tender calendar. Simply stated, a tender calendar is a database of all upcoming and past tenders. Historical tenders should be used to feed the future, thus leveraging the cyclical nature of them. Few companies have been able to create proper global tender calendars, but the ones who have done so unleashed tremendous value.
A well-implemented tender calendar provides the opportunity to enter a virtuous cycle of tender wins. Properly planning your tender, it can lead you to more wins for various reasons:
First, in-time knowledge of the tender allows for proactive preparation of the organization. Preparation will be valuable in multiple areas, but some are more worth noting. Exceptions documentation can be approved and documented according to the tender procedure, increasing the quality of the documents delivered. Third party involvement can be negotiated with much deeper resource involvement. This can achieve significant savings especially in terms of costs. Finally, when necessary, price approval for price decrease can be obtained on time to save market share erosion.
Second, planning will decrease the need for ad-hoc actions. It should facilitate optimal use of resources, and more importantly in the tender landscape, delivery of documents on time. Delivering the right document on time dramatically increases the probability of winning a tender.
Third, a properly implemented tender calendar allows you to aggregate data at the corporate level. Having this overarching view enables the supply chain to optimally deliver the drugs to the patients. Tremendous savings can be achieved, allowing a price decrease to ensure winning the tenders. That’s where the virtuous cycle is unleashed. Proper planning will facilitate tender wins, which will facilitate planning if properly tracked in the tender calendar.
Of course, planning has some limits, but the tender calendar is a necessary tool to achieve an optimal tender process. If you’d like to learn more about tender processes and implementation, read the whitepaper from our experts.
If you want to learn more about how to improve the tendering process, check out our white paper: Tendering & Contracting Industry Trends.
Insights Through Practical Experience and Benchmarks from the Industry
The ability to strategically and operationally address tendering in global markets continues to be of critical importance given increasing competitive factors in the industry. We surveyed the life science industry on their tendering practices, and these are the results!