Life Sciences Procurement Challenges & Trends: Imperatives for CPOs in 2023

The life sciences industry has made remarkable progress in personalized medicine through precise diagnostic and prognostic tools that were once limited to consumer electronics. Procurement and sourcing have been crucial components in this transformation. However, life sciences organizations face new supply chain and procurement challenges.

As a recent ISG study of Fortune 3000 life sciences procurement leaders emphasizes, life sciences supply chain challenges are unique. Procurement leaders in this industry (64 percent) are most concerned with ensuring supplier diversity while maintaining reliable and sustainable supply chains. On the other hand, procurement leaders in other industries are more worried about labor cost inflation and rising wages.

To continue advancing personalized medicine and devices, life sciences procurement leaders must supplement their existing agenda with new responsibilities, metrics and accountabilities while adhering to the corporate agenda. Digital procurement leaders are responsible for traditional year-over-year savings. They must also be accountable for other metrics that reflect the financial health, market presence and social-economic stewardship of the company. They require reliable procurement spend data and market intelligence to fulfill their responsibilities effectively.