the opma breakfast series - april 14th

DEMYSTIFYING PHARMA PROCUREMENT

INTRODUCTIONS

STRATEGIC SOURCING AND PROCUREMENT – BIG PHARMAOLIVER FERNANDEZ, STRATEGIC SOURCING NOVARTIS

STRATEGIC SOURCING AND PROCUREMENT – SMALL BIOTECHSTEPHANY LAPIERRE, FOUNDER AND CEO MATCHBOOK| TEALBOOK

NAVIGATING THE RFP PROCESSOLIVER AND STEPHANY

DISCUSSION AND Q&A

AGENDA

INTRODUCTIONS

OLIVER FERMANDEZ, STRATEGIC SOURCING NOVARTIS

STEPHANY LAPIERRE, FOUNDER AND CEOMATCHBOOK & tealbook®

INTRODUCTIONS

STEPHANY LAPIERRE, FOUNDER AND CEOMATCHBOOK & tealbook®

Launched matchbook in 2008

Managed 400+ RFPs for 40+ Pharma and Biotech companies

Inspired by matchbook, launched tealbook in 2014

tealbook is licensed by 14 biotech companies and generated over $30 million in revenue for its supplier members

INTRODUCTIONS

OLIVER FERMANDEZ, STRATEGIC SOURCING NOVARTIS

Joined Novartis in 2012

Partners with the business stakeholders, global, regional and country Procurement teams to develop the cross-divisional procurement strategy for the Agencies, Media, and Print categories

15+ years sourcing experience

MBA Cornell University ‘14

PROCUREMENT PERCEPTIONS

AGENCIESProcurement is a bottleneckProcurement only cares about savingsProcurement is bonused based on savings targets

INTERNAL PARTNERSProcurement is a road blockProcurement doesn’t understand my businessProcurement is not a decision makerProcurement seek to influence/change my budget

PROCUREMENT IN BIG PHARMA

GOALS

ComplianceSupplier performance managementLeverage synergies to reduce costsIncrease Cash FlowStakeholder satisfaction

PROCUREMENT IN BIG PHARMA

VALUE

Supplier partnerships / SLAsBudget Optimization / ‘Bang for the buck’Operational EfficiencyIndustry Benchmarks

PROCUREMENT IN BIG PHARMA

METRICS

Savings / Total Cost of Ownership (TCO)Cost AvoidanceSpend under contractSupplier Performance and Innovation

PROCUREMENT IN SMALL BIOTECH

GOALS

Build and support a strategic sustainable supplier network

PROCUREMENT IN SMALL BIOTECH

VALUE

Keep lean teams productive and focusedIdentify the strongest partnersMitigating risksStretch funding dollars

PROCUREMENT IN SMALL BIOTECH

METRICS

Strategic spendInnovative supplier baseSuccessful launch

SUCCESSFULLY NAVIGATING THE RFP PROCESS

COST OF RFPs

AGENCIES - $35,000 to $100,000/RFPBusiness DevelopmentMarket ResearchStrategyCreativeExpertiseTimeTravelLoss of time for other clients and opportunities

CLIENTS - $20,000 to $60,000/RFPResearchIntelligenceTimeResource

CLIENT SIDE

TIP #1 ALIGN YOUR TEAM

TIP #2 DEFINE KEY CRITERIA AND SUCCESS FACTORS

TIP #3 PROVIDE A COMPREHENSIVE BRIEF AND DIRECTION

TIP #4 ALLOW FOR QUESTIONS

TIP #5 VET AND NARROW DOWN

TIP #6 CLEAR AGENDA AND EXPECTATIONS

TIP #7 PROVIDE FEEDBACK

PROCUREMENT SIDE

TIP #1 COMPLIANCE

TIP #2 CLARITY

TIP #3 CONSISTENCY

TIP #4 CONTRIBUTION AND COLLABORATION

TIP #5 COMMUNICATION

AGENCY SIDE

TIP #1 CHOOSE CAREFULLY

TIP #2 FOCUS ON KEY CRITERIA

TIP #3 DO YOUR HOMEWORK AND ASK QUESTIONS

TIP #4 SELECT YOUR TEAM

TIP #5 USE (DON’T SHOW) KNOWLEDGE TO PRESENT STRATEGY

TIP #6 DO AN ICEBREAKER

TIP #7 ASK QUESTIONS/LISTEN

TIP #8 CLOSE/FOLLOW UP