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Breakout session Building a winning commercial tender organization Life Science Strategy Forum Boston, October 26 Joshua Goodman Boston office One Canal Park Cambridge, MA 02141, USA Tel. +1 617 231 4598 [email protected] www.simon-kucher.com What this session is about Building a winning commercial tender organization: Provide background on EU tender market and key trends Developing the right organizational framework for tendering Ensuring auditable strategy and execution tender processes Building tender capabilities across headquarters and affiliates Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 2 Tenders have become a key lever in the context of healthcare cost containment “Lower budgets for providers will mean lower overall spending for me.” “In order to reduce my costs I need to buy cheaper.” “If I don't cut down my prices significantly I will be out of the market.” Healthcare procurement trends Constrained budgets Payers Procurement is in primary focus of provider cost reduction Pooled purchasing through tenders/ central procurement Pressure to cut costs Complex buying centers, incl. professional purchasers Standardized customer demands Providers Increasing price transparency and referencing Pressure to cut prices Suppliers Fewer but bigger transactions with high downside risks Shifting power to the customer Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 3 Public tenders are just one specific form of procurement Deal types Public tenders Big deals Contracting Group of private chains (e.g. hospitals, pharmacies, wholesalers) Single hospitals Process designed individually by centralized procurement departments (tender-like framework agreements) Direct procurement negotiating with suppliers § Issuing body Public hospitals Regional/national authority Public insurance funds Deal characteristics Formal/structured process following national and EU procurement law Transparent purchasing criteria with limited price negotiations National, regional or local level Focus Purchasing criteria not transparent with rounds of price negotiations Pharmacies Wholesalers Purchasing/listing criteria usually not transparent Level of commitment to volumes varies Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 4 From a healthcare authority perspective, tenders offer several benefits Cost containment Market management Quality of treatment Reduce the cost of drugs/devices as part of healthcare cost-containment measures Ensure competitive market dynamics Ensure high quality levels in patient treatment Maximize compliance and transparency of healthcare product procurement Minimize geographical differences in patient treatment Use cost reductions to treat all patients in need and to be able to afford innovative drugs/devices Manage a stable supply of drugs Source: Simon-Kucher & Partners Primary Research 2014 Life Sciences Strategy Forum_ Building a winning commercial tender organization 5 Despite similarities in overall process, tender management is often complex, due to market-specific variations Selection of variations Tender scope Tender duration Tender weighting National 3-year contract Price driven Regional 2-year contract Price-value driven Local 1-year contract Service driven etc. etc. etc. Tendering authority Tender terms Tender stakeholder Health authority One lot, one supplier Medical stakeholders Hospitals By active substance*, product class, indication Administrative stakeholders Sick funds etc. etc. etc. Source: Simon-Kucher & Partners *w/ or w/o considering different modes of administrations Life Sciences Strategy Forum_ Building a winning commercial tender organization 6 Public tendering for drugs is prevalent across countries and categories but with different focus areas Country Germany Italy Netherlands Norway UK And… Tender focus Frequency Criteria Ambulatory care Mostly generics, biosimilars, some branded Sick funds tender for >90 molecules Tenders can be regionalized Annually or every 2 years Lowest price Product portfolio Supply Hospital care Regional/Area Vasta negotiations/tenders Hospital negotiations Annually or every 2 years Lowest price Highest efficacy/quality Ambulatory care Currently 33 molecules Varies by insurer Bi-annually/annually, extension possible Lowest price Hospital care Pharmaceuticals Outlined in pandemic plans Annually Lowest price Best economic offer Hospital care Vaccines Communicable diseases and pandemics Determined by tendering strategy Most economically advantageous tender Austria Belgium Denmark Finland France Ireland Portugal Spain Sweden Switzerland Source: Simon-Kucher & Partners; Kanavos/Seeley/Vandoros (2009): Tender systems for outpatient pharmaceuticals in the European Union: Evidence from the Netherlands, Germany and Belgium; London School of Economics Life Sciences Strategy Forum_ Building a winning commercial tender organization 7 Common commercial pitfalls in tender management Greed Lack of tender prioritization Fighting for every tender to win market share Aggressively attacking competitor-owned tenders Lateness Ramping up activities only after the request for a tender is on the table Lack of systematic pre-selling to all relevant stakeholders Missed opportunities to influence customer requirements/specifications Activism Information overload vs. targeted value messaging for stakeholders Opportunistic pricing without considering second-order effects Offering the "latest and greatest", not what customers are asking for Forgetfulness Lack of customer knowledge and pricing intelligence No systematic monitoring of outcomes Insufficient learning from past successes and mistakes Inefficiency Insufficient and unsystematic internal processes Too centralized without local know-how or too local without global view Poorly established escalation rules to prioritize tenders for management focus Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 8 Opportunistically approaching tenders can have very negative business implications Simon Kucher project example Tender impact on a life science company in Spain Development index Volume index 120 110 Revenue index 100 Short-term tender impact Significant volume growth Sharp price drop Slight drop in revenues 90 80 Time Large deal sizes; small number of customers Long sales cycles; infrequent contract renewals Tender specifications vary by hospital Price index Long-term tender impact Significant drop in profitability Overall market price erosion Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 9 To manage this complexity, a winning tender organization excels in three distinct but interdependent areas Tender set-up Building the right internal tender infrastructure Tender strategy Tender prioritization and market tender strategies Tender excellence Tender execution Successful management of specific tenders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 10 Key takeaways The "good old days" of selling to hospitals through strong clinical relations are history The prevalence of different forms of tendering is high across Europe – and increasing Key characteristics of big deals: ‒ Winning or losing with a substantial business impact ‒ Formal, customer-driven process and full transparency on the customer side ‒ Various stakeholder groups involved on the customer side ‒ Limited windows of opportunity to influence outcomes ‒ Clearly specified demands and objective award procedure (in some cases only price) ‒ Often leading to framework agreements without binding volume commitments Getting these deals right is essential for future commercial success! Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 11 Tender set-up To manage this complexity, winning tender organization excels in three distinct but interdependent areas Tender set-up Building the right internal tender infrastructure Tender strategy Tender prioritization and market tender strategies Tender excellence Tender execution Successful management of specific tenders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 12 Tender set-up Building a winning tender organization requires consideration of 5 key design principles 1 Make or buy Decision whether to develop tender capabilities in-house or to partner with an external company 2 Degree of centralizations Agreement on degree of centralization for tender decision-making and ownership 3 Formalized processes A clear formalized tender process defining activities, roles and responsibilities 4 Expertise Necessary expertise and skills to execute the tender management process 5 Easy to use support tools Easy to use tender tools implemented to support key activities throughout tender management processes Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 14 Tender set-up 2 Agree on degree of centralization and tender office position for tender decision-making and ownership Degree of centralization principles Centralized Center-led Tender organizational position Option 1: Tender office on a country level only HQ Marketing Indirect markets HQ tender department support and final decision-making responsibility Centersupported HQ tender department support with veto rights but no final decisionmaking responsibility Autonomous country led Country … Tender office Option 2: Tender office split HQ Marketing Tender Office … Country Tender support Option 3: Tender office as central Direct markets HQ HQ tender department with support but no final decision-making responsibility Ad hoc tender support between HQ tender office and countries Marketing … Tender Office Country Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 15 Tender set-up 3 A clear formalized tender process defining activities, roles and responsibilities Selection Different instruments for documentation observed Process map Activity checklist Definitions Training sessions conducted with all stakeholders Knowledge and expertise fostered Handbook/guidelines One master document Updates communicated in timely matter Institutionalizes knowledge Reduced dependency on employees Common understanding Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 16 Tender set-up 4 Sufficient capabilities and skills to execute the tender management process Key tender stakeholders Local Central Critical positions in the tender process are the central and local tender coordinators Central tender coordinator Management Both require specific capabilities and skillset to ensure successful tender management Management Central tender office Local tender office Marketing … Sales Local tender coordinator … Central coordinator: Broad market understanding and strong intercompetency skills to coordinate across countries Local coordinator: Key market insights with strong quantitative and project management skills Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 17 Tender set-up 5 Easy to use tender tools to support key activities throughout tender processes Project example Selection of best practice support tools Preparation Tender strategy process Tender market factbook Gain overview of overall market and its specificities Preparation Tender execution specific process Tender calendar Ease overview of upcoming tenders and activities Strategy Market simulation tool Estimate and forecast volumes and prices across tenders Execution Tender simulation tool Simulate tender-specific prices and determine strategy for bid Monitoring Tender database Track all tender outcomes to enable meaningful analysis Kommune Aabenraa Aalborg Aarhus Ærø Albertslund Allerød Assens Tender approach Stand alone Please choose Stand alone Stand alone Stand alone Stand alone Cluster Cluster Aabenraa Aalborg modellen Aarhus Ærø Albertslund Allerød Fællesindkøb Fyn Ballerup Billund Bornholm Brøndby Brønderslev Dragør Egedal Esbjerg Faaborg-Midtfyn Stand alone Cluster Stand alone Cluster Please choose Please choose Cluster Cluster Cluster Ballerup Sydjysk kommuneindkøb Bornholm Vestegnens Indkøbsforum Aalborg modellen Dragør Ind.fællesskabet Nordsjælland 12- byerne Fællesindkøb Fyn Fanø Please choose ?? Favrskov Faxe Fredensborg Fredericia Frederiksberg Frederikshavn Frederikssund Furesø Gentofte Gladsaxe Glostrup Greve Cluster Cluster Cluster Cluster Cluster Stand alone Cluster Cluster Cluster Cluster Cluster Cluster Jysk Fællesindkøb Fællesudbud Sjælland (tidl K17) Ind.fællesskabet Nordsjælland 12- byerne Spar 5 Frederikshavn Ind.fællesskabet Nordsjælland Ind.fællesskabet Nordsjælland Spar 5 Spar 5 Vestegnens Indkøbsforum Fællesudbud Sjælland (tidl K17) Tender Start Tender End Extension Date start Date end Extension 01/01/2012 31/12/2014 1 x 12 months 01/03/2009 28/02/2010 2 x 12 months 01/02/2009 01/02/2012 1 x 12 months Please choose 01/08/2009 31/07/2011 2 x 12 months 01/07/2008 30/06/2011 2 x 12 months 01/03/2012 28/02/2014 2 x 12 months Tender end MaxExpected expiry Actual expiry Date max Date exp Date actual 31/12/2015 31/12/2015 28/02/2012 28/02/2012 01/02/2012 01/02/2012 Up for renewal Decision date Renewal Date Yes 15/11/2011 Please choose Please choose Please choose Please choose Please choose 15/12/2011 Yes 31/07/2013 30/06/2013 31/07/2013 30/06/2013 15/03/2010 01/05/2011 01/05/2010 01/03/2009 01/06/2011 01/01/2010 01/01/2010 01/03/2012 14/03/2013 30/04/2014 01/05/2013 28/02/2010 31/05/2013 31/12/2013 31/12/2011 28/02/2014 Please choose 1 x 12 months 1 x 12 months 1 x 12 months 2 x 12 months 2 x 12 months None 2 x 12 months 2 x 12 months 14/03/2014 30/04/2015 30/04/2014 28/02/2012 31/05/2015 31/12/2013 31/12/2013 14/03/2014 30/04/2015 30/04/2014 28/02/2012 31/05/2015 31/12/2013 31/12/2013 Please choose Please choose Please choose Please choose Please choose Please choose 31/12/2013 Please choose Please choose Yes 01/11/2011 01/07/2010 01/01/2010 01/01/2010 01/09/2009 01/01/2008 01/01/2010 01/01/2010 01/09/2009 01/09/2009 01/05/2010 01/07/2010 31/10/2014 30/03/2013 31/12/2013 31/12/2011 31/08/2011 01/01/2010 31/12/2013 31/12/2013 31/08/2011 31/08/2011 30/04/2013 30/03/2013 1 x 12 months 2 x 12 months None 2 x 12 months 2 x 12 months 1 x 12 months None None 2 x 12 months 2 x 12 months 1 x 12 months 2 x 12 months 31/10/2015 30/03/2015 31/12/2013 31/12/2013 31/08/2013 31/12/2011 31/12/2013 31/12/2013 31/08/2013 31/08/2013 30/04/2014 30/03/2015 31/10/2015 30/03/2015 31/12/2013 31/12/2013 31/08/2013 31/12/2011 31/12/2013 31/12/2013 31/08/2013 31/08/2013 30/04/2014 30/03/2015 Please choose Please choose 31/12/2013 Please choose Please choose Please choose 31/12/2011 Yes 31/12/2013 Please choose 31/12/2013 Please choose Please choose Please choose Please choose Please choose 15/12/2011 Please choose 01/04/2012 Monitoring Tender-specific reporting Ensure understanding of common KPIs and targets MANY OTHER SUPPORT TOOLS Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 18 Tender set-up There is no one-size-fits-all model; designing a winning tender set-up requires customizing to company’s needs Key principles Generic tender set-up model Consideration of portfoliospecific tendering patterns Global tender committee Internal support functions Reality of the current organizational structure Transparency on the overall process and roles and responsibilities Standardization across the organization (reports, tools etc.) Simplicity of processes steps and support tools Automatization and links to the existing approaches and systems External support providers Third-party model Central model Global supervisory Outsourced tender support Responsibility in countries Screening Translation Legal Regional model Responsibility in regions Local model Country responsibility etc. … Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 19 Tender strategy To manage this complexity, winning tender organization excels in three distinct but interdependent areas Tender set-up Building the right internal tender infrastructure Tender strategy Tender prioritization and market tender strategies Tender excellence Tender execution Successful management of specific tenders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 20 Tender strategy A structured overarching tender strategy process is vital to improving prioritization & resource planning across tenders Tender strategy process Landscape Obtain overview of market-specific tender situation and competitive landscape Prioritize Score and prioritize tenders into categories to ensure focus (e.g. must win) Plan Define marketspecific tender strategy and tender resources for upcoming year Monitor Monitor, control and adapt (when required) market tender strategy and required focus Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 21 Tender strategy Understand and classify tenders according to tender archetypes Project example Price winner takes all Type of deal Range of outcomes Negotiation opportunity Scope of deal Market exclusivity Value winner takes all Price only Price and product quality/service Winner has market exclusivity Winner has market exclusivity No Variable More then one molecule Single molecules Opportunity to influence Variable Yes Type of agreement Variable Variable Price driven Type of deal Range of outcomes Negotiation opportunity Scope of deal Opportunity to influence Type of agreement Value driven Price only Price and product quality/service Multiple winners/ no market exclusivity Multiple winners/ no market exclusivity Variable Yes More then one molecule Single molecule Variable Yes Price agreement only Variable Price reference only No Balanced negotiations customer exclusivity Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 22 Tender strategy Map the tenders based on their attractiveness and include the competitive portfolio fit to determine prioritization Project example Tender types Product segments Price winner takes all Value winner takes all Balanced negotiations Price reference only Scale of attractiveness Leading product innovation B High clinical performance B B B B = least attractive = attractive B B/C B/C = most attractive Company portfolio fit Reasonable standard quality C C A/C A A = Company A B = Company B C = Company C Avoid unnecessary account and price wars with competitors Focus on where your success chances are high and aligned with overall commercial strategy Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 23 Tender strategy When prioritizing, be aware of second order effects So you decided to do this one special tender deal… But what if…? 1 You 2 Customer A Product 1 3 Your customer now views you as a pushover and expects continual price cuts Your customer now views you as a pushover and expects price cuts on all of the products you sell Your customer starts telling other customers about the huge discounts and they demand equal treatment You 2012 2013 2014 2 3 2015 Year You 1 Products You B Customer A C D Customer Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 24 Tender strategy Derive market-specific tender strategies and be sure to maintain and update them on a continuous basis Project example Tender strategy Tenders to bid for Strategy review meeting Timings Resources required …. Allocate the right resources and ensure adequate capabilities based on the defined tender strategy (importance and likely success) Timing: once a year, regular revision Set-up: per country on local site Scope: tenders with significant volume impact Local function Arrange meeting and venue Conduct preparation analysis Compile relevant account information Decide on prices for tender market simulation Central function Prepare cross-country market intelligence Attend local meeting in person Challenge local tender market simulation Enhance local sensitivity for tenders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 25 Tender strategy Build a consistent fact base to understand next year’s tender flow Project example 2014 Objectives for upcoming tender bids Tender sales Number Value Expected tenders 30 100 Objective 20 80 66% 80% Ongoing in 2014 Number Value Tender sales Expected tenders … … Objective … … Hit rate … … Hit rate 2015 Yearly commercial impact (€k) Ongoing in 2015 Expiring tenders in 2014 Expected wins/ renewals Expiring tenders in 2015 Expected wins/ renewals Total Total Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 26 Tender strategy Continuously adjust tender strategy by monitoring and evaluating outcomes and competitive behavior Project example Won-lost tender deal analysis Structured and systematic investigation on the reasons for losing (or winning) tender < Deal and profitability monitoring Database to monitor key tender related KPIs for compliance and tender reviews < Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 27 Tender execution To manage this complexity, winning tender organization excels in three distinct but interdependent areas Tender set-up Building the right internal tender infrastructure Tender strategy Tender prioritization and market tender strategies Tender excellence Tender execution Successful management of specific tenders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 28 Tender execution A common process to manage the lifecycle of each tender will ensure that every tender is executed appropriately Tender execution process Prepare Identify opportunities and collect all tenderspecific information Influence Proactively engage with authorities for tender shaping Execute Understand decision criteria and simulate impact of price to gain award Monitor Monitor, control and drive tender outcome and compliance Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 29 Tender execution Identify & engage with all relev. stakeholders before their call for bids, to sell your value proposition & influence specs Project example Stakeholder mapping Differentiating factors Identify relevant decision-making stakeholders for the tender Company-specific Product -specific Differentiate based on… Quality ...exclusive products and technical specifications; develop unique positions Breadth …wide product portfolio; bid on multiple positions Price models …different types of price model (e.g. price per patient etc.) Evidence …clinical evidence to prove cost efficiency/effectiveness and safety … … Services …clinical services to users, nurses and clinicians CSR …corporate responsibility to prove company wide responsibility ER …environmental responsibility (e.g. no use of dangerous materials…) Logistics …supply capacity to ensure fast and accurate deliveries and small orders … … Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 30 Tender execution Define your shaping strategy among key influencing levers Project example A B Pre-tender 1. Ability to influence tender lot definition Change tender lot towards being more product friendly/exclusive 2. Ability to influence decision criteria Increase importance of nonprice decision/evaluation criteria 3. Ability to differentiate within tender lot Differentiate product compared to competitors C Tender bidding 5. Ability to obtain price premium in submission Justify higher price bid through differentiation 6. Ability to influence tender scoring Change evaluation of tender once it is published Post-tender 8. Ability to activate tender Secure product switch and demand 9. Ability to win back/change a lost tender Change tender outcome (early cancellation/indirect sales) 7. Ability to negotiate after submission Second round negotiations on price and volume agreement 4. Ability to impact competitors Signal price positions and tender priorities for peaceful competition Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 31 Tender execution Adjust value communication according to stakeholders and ensure targeted engagement models Project example Stakeholder communication Channel manager Engagement model Evaluation Inflation adjustment Category breadth … Public procurement office Country manager Politicians Marketing manager HCP’s Innovation Environment Corporate resp. … Innovation … Sales reps Innovation Product selection … Adopt value communication and internal counterpart depending on external stakeholder Key Account Manager Ensure the tender-specific engagement model focuses on the right stakeholders Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 32 Tender execution Actively participate in industry lobbying for good purchasing practices Example Eucomed Example Assobiomedica Example EGMA …need for a sustainable pricing system for generic medicines to address unfair competition caused by large-scale government tenders for the products …large-scale tenders for medicines introduced by Germany and the Netherlands were undermining competition because many manufacturers refuse to participate …if only those suppliers willing to bid for tenders at the lowest possible price remained, the practice could create pressure for reduced quality …by implementing these powerful procurement entities there are a number of potential draw-backs that should be mentioned …(pooled purchasing) has a negative impact on the quality of products and care which should be adapted to local provider needs Position paper 2010 by the European Generic Medicines Association Source: Simon-Kucher & Partners, www.gabionline.net Life Sciences Strategy Forum_ Building a winning commercial tender organization 33 Tender execution Make conscious pricing decisions by using tender tools to simulate outcomes and support price decisions Project example Tender management tool Tender simulator < Price guidance based on: Price recommendation based on: Product mix/deal size Outcome simulations Competitive position Competitive behavior Previous prices Decision criteria Minimum margin requirements Price strategy Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 34 Tender execution Ensure price strategy implementation by establishing clear pricing guidelines and thresholds Project example No escalation Escalated due to value Tender price approval process Deal price (€) Deal price (€) Tender distribution on price and value Minimum price Minimum price Escalated due to minimum price Escalated due to minimum price and value Value threshold Escalated due to value Deal value (€) Account manager Head of sales Regional sales mgr. Country GM Head of sales Business unit head Value threshold Deal value (€) Escalated due price Implement escalation criteria to control tender prices and minimize second-order effects within and across markets Design a transparent ownership model for tender pricing once escalation criteria are in place Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 35 Tender execution Capture all relevant data in a centrally-managed tender database for analysis and successful tender execution Project example Tender database Central database Tender database will: Open opportunities Upcoming Ongoing Closed opportunities Won Lost Not pursued Facilitate data monitoring: The central tender database captures data and tracks opportunities in five stages: – Upcoming – Ongoing – Won – Lost – Not pursued Provide support for the tender process: Serves as a reference and supports suppliers throughout the tender process Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 36 Tender execution Implement a tender dashboard to track your performance and feed information back into the tender strategy process Project example Tender dashboard 1 2 3 Volume compliance Sales and margins vs. targets Price levels and target fulfillment Tender dashboard will: Help you retain value: Ensure you are getting the value you expected from each of your tenders Identify deviations: that quickly cause damage 5 4 Net price & volume developments Overview of deals Correct problems: Counteract to correct situations when needed Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 37 Key takeaways Best-in-class companies conduct the following when it comes to tender execution: – …defining methodology to identify tender specific opportunities and collect deal intelligence – …outlining approach to proactively engage with and influence stakeholders for tender shaping – ….educating organizations in optimal price setting and price simulation to gain award – …developing processes and tools for monitoring, controlling and driving tender award compliance Source: Simon-Kucher & Partners Life Sciences Strategy Forum_ Building a winning commercial tender organization 38 Amsterdam Beijing Bonn Boston Thank you! Template_Letter_Boston_2014-03-28.potm One Canal Park Cambridge, MA Brussels 02141, USA Cologne Tel. +1 617 231 4500 Copenhagen Dubai Frankfurt Istanbul London Luxembourg Madrid Milan Munich New York Paris San Francisco Santiago de Chile São Paulo Singapore Sydney Tokyo Toronto Vienna Warsaw Zurich www.simon-kucher.com