By: Sravani Reddy -- Senior Research Analyst
27 March, 2015
Abstract: With high inflation in many emerging markets, it has become very challenging to find new ways to optimize procurement costs. The global economic scenario is now forcing companies to reduce their procurement costs on a sustained basis to improve bottom-line. According to Everest Group estimates, 5-10% reduction in overall indirect spend can translate into 1.3% of bottom-line impact under any economic scenario. Since PR plays a major role for pharmaceutical companies especially during crisis management and corporate communications, it is highly important for companies to be aware of and address the factors which could result in overlooking a golden opportunity to optimize PR spend to cut costs The white paper talks about various cost reduction opportunities which include agency consolidation, digital PR, hourly billing rates, third party spend consolidation etc. that could be implemented while engaging with PR agencies. This white paper also focuses on identifying the percentage of cost savings that can be realized and also various methodologies used by pharmaceutical companies to achieve these cost savings.