Increasing Efficiency in Pharma Operations

When a pharma company ranks unsteadily with fluctuating sales revenue besides soaring production costs and more regulatory risks, then it’s time that pharma management makes a scrutiny of its approach and increase efficiency in pharma operations while reducing costs.

What happens, if a pharma company, with a limited product range, fails to launch novel products and remains unresponsive to customer needs? Obviously, it will be tough time for sales and marketing team, with declining sales revenue and market credibility and growing competitive pressure in emerging markets.

For getting new products to market, proper planning and effective execution matters. Oftentimes, lack of operational experts, disorganized teams and communication gaps may lead to management complexities and delay pharma operations.

In fact, some companies become over-reliant on their limited product range and customer base, and remain less focused on marketing activities or adjusting their organizational processes to ensure quality compliance. This is a sheer fallacy and setback for sales growth and productivity.

Sometimes, it may happen that a pharma company comes up with potential project ideas, but everything gets delayed due to availability of inadequate funds for investment in new facility or product development.

For substantial growth and profits, it’s essential that a pharma company examines its organizational structure, management approach and work culture. Well, if the results shows less qualified staff, lethargic management style and derailed employee attitude, then definitely the company will be less productive.

If at all the product range is unchanged, then one way to cope up the growing competition is to boost the sales activities and follow ups and slashing the prices while bringing down company expenses in all major functional departments and embracing cost-reduction efforts.

At least, to some extent, such an approach will reshape the structure of a company’s P & L and improve the efficiency and effectiveness of a company.

However, in present times, with the existing huge pharma industry, every pharma company needs to accelerate planning and implement initiatives for higher productivity by adopting the following strategic options:

1. Investing in R&D for innovative product development,

2. Allocating resources to potential markets,

3. Minimizing cost of goods sold (COGS) by optimizing its procurement and production processes,

4. Improving the sales force effectiveness to changing market requirements,

5. Setting motivated sales and productivity targets,

6. Energizing the organization to boost staff performance

7. Improving marketing capabilities to launch new products

The reality is that new approaches help pharma companies to enhance their sales, manufacturing operations and reduce manifold risks. And for all these, driving change is crucial, and change must be from the top.

To sum up, CEOs, heads of sales, heads of operations, heads of production, heads of quality and other key managers must get involve in delegating and promoting dynamic changes. It’s not just the aspirations, vision and goals, but there needs to be a charismatic leadership for steering pivotal changes, taking prompt decisions, implementing sequential steps and overseeing the operations for desired outcomes.

Image source: pharmamanufacturing.com