Phase I / Clinical Pharmacology Unit Services Category Procurement Intelligence Report

The market for Science and Environmental Research and its sub-segments such as Phase I / Clinical Pharmacology Unit Services are at an interesting intersection. New locations and vendors are emerging as cost effective suppliers of Phase I / Clinical Pharmacology Unit Services, offering an opportunity to widen the supplier base and gain further negotiation leverage with incumbent suppliers.

Data security and maintaining the confidentiality of client data and other sensitive information has towered over most of the discussions related to the category. Most geographies now have stringent regulations to protect data, privacy and confidentiality. Although suppliers now have a value proposition that puts data security and confidentiality at the forefront of marketing pitches, adherence to these standards have also increased OPEX of suppliers owing to increased compliance methods and requirement to change critical processes.

There are only a handful of \"Tier 1\" vendors in the Phase I / Clinical Pharmacology Unit Services market and they have traditionally enjoyed a premium in their pricing. However, Tier 2 suppliers are giving them a tough competition now as they can provide similar services at a lower cost. Many tier 2 suppliers achieve this parity by finding right talent at a relatively lower cost and maintaining lean operations without any frills.

Trends like these and many others discussed in this report are necessitating a relook at the way Phase I / Clinical Pharmacology Unit Services is procured and the procurement cost saving opportunities that exist.

The report discusses in detail the best practices that have served well the category managers responsible for Phase I / Clinical Pharmacology Unit Services procurement.

For example, Buyers should engage with service providers through a rate card model. Within the rate card model, Customers are provided with rate cards that contain pre-determined prices for various activities and resources required for the project. Price is fixed based on per resource hour for different job roles. This pricing model ensures that there is optimal utilization of supplier's resources.

Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and performance requirements.

It is crucial to develop measurable milestones that help monitor and benchmark the performance of service providers. In case of variations, buyers should discuss and find appropriate solutions in conjunction with the service provider, followed by the implementation of an effective strategy to avoid variations in the future. The performance of service providers can also be linked to a portion of their fee and can be paid upon rendering of services in a satisfactory manner. For instance, measuring performance based on adherence to budget and accuracy of data or information provided during research.

Phase I / Clinical Pharmacology Unit Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Phase I / Clinical Pharmacology Unit Services procurement. Some examples include: