KPMG and Coupa | The life sciences CPO challenge
KPMG and Coupa | The life sciences CPO challenge
As a growing number of trends are transforming the healthcare and life sciences (HCLS) industry on a global scale, life sciences companies in the marketplace cannot take the wait-and-see approach. Instead, they must be proactive to transform amid various reforms, shifting market demands, and increasing regulatory pressures. Additionally, they need to position their procurement organizations to capitalize on these trends, enhance their processes and technologies, rethink their organizational structures, and deliver tangible value to the bottom line. In the HCLS procurement landscape, life sciences companies (e.g., pharmaceutical, biotech, and medical device companies) are facing unique challenges as they help enable global value delivery and measurement.
Key imperative for CPOs and heads of GBS:
Delivering sustainable value to their key business unit stakeholders
Like other industries, life science organizations have distinct stakeholder groups with unique needs and requirements. Leading chief procurement officers (CPOs) are building their target operating model around delivering value to these organizations in areas such as clinical, scientific services, commercial, meetings and events and contingent labor. Value creation comes in many forms in terms of spend transparency, demand management and optimization, strategic sourcing, and working capital management.
Client challenge
- A Fortune 200 global medical devices and life sciences company was accustomed to focusing primarily on negotiated savings with minimal accountability and visibility into what portion of these savings were materializing at the bottom line.
- Lack of a clearly defined governance structure coupled with nonintuitive
technology made it very difficult for the client to drive spend on contract.
KPMG approach, powered by Coupa
- Executed an assessment to evaluate the current P2P process, activities, and technology on a global basis
- Developed an opportunity road map along with a multiyear P2P transformation roadmap and underlying business case
Key results
- Integrated P2P business case that forecasted an annual run rate of over $50 million of benefits based on improving spend visibility, spend compliance, and other benefits (such as early payment discounts, transactional savings, etc.)
- A globally standardized process design enabled by Coupa, with 80 percent standardization across over 40 countries
Why KPMG
- Recognized leader in implementation and support
- Over 30 Coupa deployments spanning multiple regions and countries
- Over 100 certified and experienced Coupa deployment resources located worldwide
- Coupa implementation experience with the Fortune 500
- KPMG Ignition Centers, an integrated network of collaborative spaces
designed to spark innovation and support new technology
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