The pharma industry faced many hurdles in 2023, from rising costs and environmental pressures to political uncertainties and supply chain disruptions.
How will these factors shape the sector in 2024? And what are the personal and professional goals of pharma professionals for the new year?
We reached out to the PharmaSource community to get their insights and opinions on how they are preparing for 2024.
Procurement to grow in strategic importance
“I believe the last few years have been the most challenging years in my 20+ years in the field of procurement. However also the most rewarding!” says René Wienmann, Chief Procurement Officer at Chr. Hansen.
“The procurement profession has earned itself a much deeper respect by managing us though supply chains shocks, hyperinflation, managing external supply risks. We have before a much more strategic function is many companies, as we should be.”
- Listen to the full interview with René Wienmann
Prioritise partnering with suppliers to deliver sustainability targets
Many procurement leaders are working on programmes to engage suppliers with their ESG commitments, recognising that suppliers hold the key to successfully reducing scope three emissions targets.
“Continuing our Sourcing Sustainability journey together with our suppliers, and together with other Sourcing Professionals in the world. It is a extremely important it is a shared challenge as ‘Together We Are Stronger’.” René Wienmann
“Strong vendor relationship, reliability and transparency are expected by pharma regulatory bodies” says Gael Le Lem, three time Supply Chain director and Consultant.
“The trends I am anticipating are the increase of reliability, trust in the vendor relationship, transparency, agility, and the willingness to find real sustainable solutions.”
“Sustainability is rising as a priority for everyone” says Kateryna Holovnia Head of Procurement at Dechra Pharmaceuticals.
“Many sustainability questions are coming in the next years. We have already noticed it with packaging (move to FSC, potential ban PFAS application, etc). Chinese downstream is getting actively involved in improving their footprint and it is a very satisfactory sign.”
“In 2024 it is expected that Chinese manufacturing sites will be finally audited which could likely result in FDA notifications and partial disruption of Chinese API/ RM’s/ Intermediates.”
“There is a desire for a lot of players in our industry not to be dependent on Chinese market and setting up different to the ordinary types (e.g. enzymatic) or local EU production to split the risks. However, the difficult thing is that when you track it back, many initial materials are still derived from Asia.”
- Listen to the full interview with Kateryna Holovnia here
R&D will need to find savings as prices continue to rise
Dr. Thorsten Fallisch, Head of Global R&D Procurement at Grünenthal says that “based on the current global macro-economic situation we should at least expect volatility in consumables costs, starting with an increase in prices in 2024.”
“In R&D there is a shortage of experienced and highly qualified research personnel. This in combination with a price explosion in Non-Human Primates (NHPs) is driving increases in CRO service prices.”
This in combination with a felt price explosion in NHPs
This will lead R&D organisations to re-focusing on savings in 2024, says Thorsten. “Looking at that agenda 2024, we foresee a shift from a strong focus of R&D procurement on speed alone in 2023, towards speed and savings in a roughly balanced emphasis.”
- Listen to the full interview with Dr Thorsten Fallisch here
Balance efficiency with effectiveness
“There is constant drumbeat in the background—pressure to deliver more with less. The risk is that we end up in this hustle culture, grinding harder instead of working smarter.” says Rachel Power, Founder Power Your Potential.
“It’s easy to get caught up in the whirlwind of doing more, but my intention is always about working out how to not just work harder; but now to get savvy about working smarter. It’s all about finding those sweet spots where efficiency meets effectiveness.”
Andrien Zanier Strategic Procurement Manager Fresenius Medical Care North America says it is important to “constantly ensuring the equation efficiency vs effectiveness is maintained in balance.”
“This will mean simplifying processes (sourcing events, negotiations, etc), improving relationships both internally and externally by leveraging technologies such as more in person meetings, more meaningful business reviews and use of collaboration platforms.”
My Linh Hoangová, Global Procurement Manager for Excipients at Novartis says she will prioritise “building stronger connection with stakeholders (external and internal) by spending time outside of office.
Thinking strategically e.g. not replying on emails right away, taking time when discussion gets escalated and other parties are starting to be emotional.”
Keep a healthy Work/Life Balance
“My advice for 2024 is to prioritise what really matters in life and business. Get better at saying ‘no’ more to allow yourself time.” says Jill Robbins, Fractional CPO, Matchbook.
- Listen to the full interview with Jill Robbins here
Erika Roberts, Principal Consultant, ELR Lab Services agrees. “My resolution for the new year will be to increase my focus on work-life balance and my family. I am definitely going to try and use my calendar apps more and try to stay more organized.”
“Work life balance – regular physical activities, taking full vacation time instead of transferring them to another year” is key says My Linh Hoangová
“I took my job too seriously in previous years; working overtime and weekends and in the end caused myself health issues. Instead of looking at negative things, I started to look into my job with different perspective such as starting to create work life balance for real – for example going on my training even if its scheduled for 4 pm and finish my work later or do not read any emails on Sunday or turn off my outlook notifications during weekend. “
Make progress with Generative AI and Digitalisation
2023 was the year that the world understood the power of generative AI to transform industries. What will 2024 bring to pharma?
Andrien Zanier says that it is important to understand how to make this useful to your organisation. “AI will definitely impact a lot of different services/categories, but most importantly, what really matters are the value-add outcomes supported by AI. That is what we are focusing on, understanding which AI offering is “tried and true” and which are just riding the AI hype wave.”
“We are taking the next steps in our digital transformation. We need the digital intelligent solutions to help delivering on our many challenges: cost development, sustainability improvement, regulations, managing supply chain shocks, unstable geopolitical environments etc. Believe we will see many use-cases on the usage on GenAI in the procurement landscape, and deployment of solutions in a pace we have not seen before.” René Wienmann
“Today the whole supply chain is tracked and partners collaborate together. My personal target is to complete ‘one-click stop shop’ for all the procurement data within Dechra. This is increasing data visibly, globally. This has taken a lot of efforts but we are we already seeing some results. It helps us to move procurement to a crucial business partnering role” Kateryna Holovnia
The War for Talent ‘must be won‘
“The ‘War for Talent must be won.” says René Wienmann The procurement profession is lacking resources and talents. The procurement function is being recognized for its critical role, and the expectations towards a Procurement Professional is likewise increasing. The role becomes more strategic and expertise within e.g. digitalization, analytics and sustainability are particularly high. So we must make the young talents aware of how exciting and important the procurement profession and function is.”
Set clear goals and hold yourself to account
Rachel Power says that “Setting clear intentions is the name of the game. I’ve learned through coaching that knowing where you’re headed is half the battle. So, I’m laying out my roadmap for 2024, with clear, achievable goals that light the path ahead.
Accountability is key. “It’s easy to dream big and set intentions, but the magic happens when you hold yourself to account. I’m making it a point to check in regularly, measure progress, and course-correct as needed. It’s the secret sauce to turning resolutions into reality.”
“My New Year’s resolution isn’t just a list of lofty goals; it’s a commitment to self-improvement through coaching, setting intentions, and being my own best accountability partner. Here’s to a year of growth, fulfilment, and a little bit of magic!”
Make it fun!
Ray Sison, Managing Partner for SCxCMC says that 2023 “was a challenge in getting our new venture SCxCMC off the ground.”
“It’s easy to get overwhelmed by forecasts and spreadsheets, proposals and contracts. Because of this, I’m reminded to not let go of what I love about biotech and my career path within it. In 2024, I will:
- Give myself permission to invest time being curious about new things
- Find joy in developing the next generation of leadership and talent
- Make networking in person fun again!”
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