Defining a procurement roadmap for a biotech start-up with a virtual business model

Situation

For a PE owned start-up in neuroscience biopharma, its ‘virtual’ business model relied heavily on CROs and third-party providers. But its procurement infrastructure had not yet been put in place. As it began to enter into initial critical supplier agreements, it needed to formalize its procurement organization design, modus operandi, and processes.

Solution

We partnered with the portfolio company to:

• Design a future procurement organization and predict its needs based on key stakeholder interviews and an analysis of key metrics and business drivers.
• Define the organizational set up with clear processes and a RACI of decision authority levels and recommended resourcing for three-time horizons – 3, 9, and 24 months.
• Propose key tools (e.g. contract management tool) to efficiently manage procurement processes.

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 needed to be completed in 3, 6, 9 months