Are your lab managers constantly complaining about critical research delays because supplies didn’t arrive on time? As a biotech CFO or controller, you’ve likely witnessed how a single missing reagent can derail weeks of research, costing thousands in lost productivity and pushing back critical milestones.
For growing biotech companies scaling from 50 to 250 employees, manual procurement processes aren’t just inefficient—they’re actively undermining your research objectives and burning through precious investor funding. When every research delay directly impacts your runway and milestone achievements, procurement isn’t just an operational concern—it’s a strategic imperative.
In this guide, we’ll show you exactly how leading biotech companies including startups are automating their procurement processes to cut lab supply costs by up to 30%, ensure 99% on-time delivery of critical materials, and maintain perfect compliance records—all while freeing up your scientists to focus on breakthrough research rather than chasing purchase orders.
Ready to eliminate procurement bottlenecks that delay critical research? See how ProcureDesk’s automated procurement solution helps biotech companies reduce supply costs while ensuring compliance Schedule Your Personalized Demo Today →
The Critical Procurement Challenges Facing Biotech Companies
1. Manual Processes Leading to Research Delays
Many biotech companies still rely on fragmented, manual procurement processes that create bottlenecks in research workflows. Lab managers often spend valuable research time tracking down purchase approvals or following up on delayed orders.
According to industry studies, biotech researchers can spend up to 15% of their time on administrative tasks related to procurement, time better spent on actual research and innovation.
Signs your lab is suffering from manual procurement inefficiencies:
- Purchase requests trapped in email threads
- POs are tracked in spreadsheets.
- Scientists are spending time with non non-productive activities like invoice matching.
- Researchers creating their own “shadow” procurement systems
- Lab managers are personally tracking orders and delivery statuses
Learn more about how to overcome these challenges with biotech procurement software.
2. Limited Visibility into Research Spending
For biotech CFOs and controllers, understanding where research dollars are being spent presents a significant challenge. With multiple departments placing orders from various vendors, maintaining clear budget oversight becomes nearly impossible without proper systems.
This lack of visibility creates several downstream problems:
- Difficulty forecasting cash needs accurately
- Poor decision-making for capital allocation.Challenges in allocating expenses to specific grants or projects
- Inability to identify cost-saving opportunities
- Missed opportunities for vendor consolidation and better pricing
Discover how lab procurement software can provide greater visibility into research spending.
3. Regulatory Compliance Risks
Biotech firms operate under strict regulatory requirements, with documentation and traceability being paramount. Manual procurement processes create significant compliance risks:
- Incomplete audit trails for purchased materials
- Missing documentation for regulated supplies
- Difficulty tracking expiration dates and lot numbers
- Inconsistent vendor qualification processes
Learn more about navigating regulatory requirements with biotech supply chain management.
4. Inefficient Vendor Management
The average biotech company works with dozens of specialized suppliers across multiple categories. Without centralized vendor management, the procurement team struggles with:
- Inconsistent pricing across departments
- Missed volume discount opportunities
- Redundant vendor qualification efforts
- Poor tracking of vendor performance metrics
Discover strategies for improving vendor relationships with biotech outsourcing strategies.
5. Cash Flow Constraints
Biotech companies, particularly growing ones funded by investment rounds, face strict cash management requirements. Inefficient procurement creates financial strain through:
- Unexpected expenses from rush orders
- Overstocking of rarely used supplies
- Duplicate purchases across departments
- Missed early payment discount opportunities
ProcureDesk: Purpose-Built Procurement Automation for Biotech Companies
ProcureDesk offers a comprehensive procurement automation solution specifically designed to address the unique challenges facing biotech companies.
Simplified Lab Supply Ordering
ProcureDesk’s intuitive platform connects directly with leading lab supply vendors through over 200 punchout catalogs, allowing researchers to:
- Browse vendor catalogs directly within the ProcureDesk interface
- Access pre-negotiated pricing and contract terms
- Submit purchase requests without navigating multiple vendor websites
- Track orders from approval through delivery,, including receipts, lot expiration dates
- Streamlined purchasing process by providing a single process for your procurement needs. Whether you are purchasing reagent from Avantor or CRO services, our procurement solution is a single place for all you purchasing needs.
This streamlined approach allows lab staff to focus on research rather than procurement administration. For biotech CFOs and controllers, this means significant time savings and improved productivity across research teams.
Here is an example of how the punchout process streamlines your purchasing from multiple vendors:
Automated Approval Workflows
ProcureDesk eliminates approval bottlenecks with customizable workflows that:
- Route requests to appropriate approvers based on amount, department, or category
- Set up auto approval rules so that the small purchases are automatically approved.
- Allow mobile approvals for stakeholders on the go
- Provide automatic notifications when action is needed
- Enforce compliance with organization-specific purchasing policies
For biotech industry, these automated workflows ensure that critical research supplies receive timely approval while maintaining appropriate financial controls.
Here is an example of an approval workflow:
Real-Time Budget Tracking
For finance leaders in biotech and life sciences, ProcureDesk spend management delivers real-time visibility into research spending with:
- Real-time budget dashboards by department, project, or grant
- Forecasting tools for improved cash management
- Detailed spending analytics to identify savings opportunities
- Comprehensive reporting for investor and board presentations
This enhanced visibility allows finance teams to make data-driven decisions about resource allocation and helps maintain compliance with investor expectations around burn rates and financial discipline.
Here is an example of how easily you can track budgets and consumptions in procurement system:
Streamlined Invoice Processing
ProcureDesk’s accounts payable automation capabilities eliminate manual invoice processing:
- OCR (Optical character recognition) and AI to automatically create invoices from the invoice PDF.
- Automated three-way matching of purchase orders, receipts, and invoices
- Digital invoice capture reducing data entry requirements
- Streamlined exception handling for discrepancies and automated routing of invoices for exception approval
- Integration with accounting systems for seamless payment processing
For biotech accounting teams, this automation dramatically reduces invoice processing time while improving accuracy and control. This enables finance teams to lose books in less time.
Here is an example of how the system identifies price and quantity exceptions:
Learn more about automating invoice processing in biotech.
Complete Procurement Audit Trails
ProcureDesk creates comprehensive documentation of all procurement activities:
- Digital records from requisition through payment
- Secure document storage for vendor qualifications and certifications
- Transparent approval histories for regulatory compliance
- Searchable archives for audit preparation
This documentation ensures biotech firms can demonstrate compliance with both financial controls and industry-specific regulatory requirements.
Here is an example of the audit trail:
Built-in integration for your account or ERP system
ProcureDesk delivers real-time financial connectivity with your existing systems:
- Seamless integration with QuickBooks, NetSuite, Sage Intacct, Xero, and other leading platforms
- Live budget updates that instantly reflect procurement activities across all systems
- Real-time visibility into purchase order status for finance teams
- Immediate financial impact analysis of procurement decisions These real-time integrations eliminate the lag between purchasing activities and financial reporting, allowing biotech finance teams to make data-driven decisions based on current information rather than outdated reports.
How Procurement Automation Transforms Biotech Operations
Implementing a procurement automation solution designed for biotechnology companies delivers measurable benefits across multiple dimensions:
1. Streamlined Purchase Requisition Process
Automation eliminates manual approval bottlenecks, creating a structured workflow where:
- Lab staff can easily submit purchase requests through intuitive interfaces
- Approvals are automatically routed to the appropriate stakeholders
- Researchers can track approval status in real-time
- Predetermined approval thresholds accelerate routine purchases
2. Enhanced Spend Visibility and Control
For finance leaders, automation provides unprecedented visibility into research spending:
- Real-time dashboards showing expenses by department, project, or category
- Budget tracking against forecasts
- Early alerts for potential budget overruns
- Comprehensive reporting for investors and stakeholders
3. Improved Compliance Documentation
Automation creates a secure repository of procurement documentation:
- Complete digital audit trails from requisition to payment
- Centralized vendor qualification documentation
- Electronic record-keeping for regulatory inspections
- Consistent application of approval policies
4. Strategic Vendor Management
With automated procurement, biotech companies can optimize vendor relationships:
- Consolidate purchases for better pricing
- Track vendor performance metrics
- Streamline reorder processes for frequently purchased items
- Improve negotiating leverage with spending data
Compare purchasing software options for biotech to find the best solution for vendor management.
5. Accelerated Research Timelines
Perhaps most importantly, automation removes procurement barriers that delay research:
- Faster approval cycles for critical research materials
- Improved supply chain visibility
- Reduced stockouts of essential supplies
- Less researcher time spent on administrative tasks
Case Study: How EvolveImmune Therapeutics Transformed Its Procurement Process
EvolveImmune Therapeutics, a pioneering biotech company focused on developing new precision cancer medicines, faced significant procurement challenges as it scaled operations. As an early-stage biotech company with promising immuno-oncology programs, EvolveImmune needed efficient systems to support its growth toward clinical trials.
Challenges:
EvolveImmune’s initial procurement process involved using several different platforms, depending on the type of order. The company used one system for lab supplies and consumables, and another system for manual orders and contracted research. As their order volume increased, the time spent processing manual orders also increased significantly.
This fragmented approach created several problems:
- Time-consuming manual order processing
- Lack of visibility across different purchasing systems
- Difficulty tracking order status and delivery times
- Inefficient invoice processing and payment workflows
Solution Implementation:
EvolveImmune needed a platform that would scale with them, incorporate all their own vendors, and allow all their orders to be managed in a single system. They also wanted to find a solution that was familiar with the unique needs of biotech procurement, which led them to ProcureDesk.
When COVID-19 hit and operations temporarily slowed, EvolveImmune took the opportunity to focus on operational efficiencies, including implementing ProcureDesk to align their entire procure-to-pay process in one system.
Key implementation components included:
- Centralizing all procurement in a single platform
- Creating custom approval workflows based on order value
- Integrating with their accounting system
- Setting up vendor management for their specialized suppliers
Results:
For EvolveImmune, the biggest benefit of ProcureDesk has been the significant time it’s saved those working in finance and operations. By reducing the manual workload associated with procurement, while also providing more detailed insights into order status and tracking, ProcureDesk has helped handle EvolveImmune’s increasing procurement demands.
Specific improvements included:
- Streamlined order placement and approval processes
- Enhanced visibility into spend across all categories
- Simplified invoice processing with accounting system integration
- Adaptable workflows that can change as the company grows
As EvolveImmune’s Finance Director noted: “ProcureDesk has saved us so much time. We are able to process invoices and integrate invoices into our AP system much more easily than we did previously.”
Implementation Best Practices for Biotech Companies
Successfully implementing procurement automation requires careful planning and execution. Consider these best practices:
1. Stakeholder Alignment
Ensure both finance and research leaders understand the benefits and provide input on requirements. The most successful implementations address the needs of both groups.
2. Process Mapping
Document current procurement workflows to identify pain points and opportunities for improvement before configuring your automation solution.
3. Vendor Integration Strategy
Prioritize integration with your most frequently used lab supply vendors to maximize immediate benefits. Compare Quartzy alternatives for vendor integration options.
4. Phased Implementation
Consider a phased approach, starting with requisition and approval workflows before expanding to invoice approval workflows and analytics.
5. Training and Change Management
Develop comprehensive training materials for both research and finance teams, emphasizing how automation will make their jobs easier.
Measuring ROI from Procurement Automation
Biotech companies implementing procurement automation typically see returns across multiple dimensions:
- Time Savings: Reduced administrative burden for research staff (typically 5-10 hours per researcher per month)
- Cost Reduction: Improved vendor negotiations and prevention of duplicate purchases (typically 5-15% of addressable spend)
- Cash Flow Optimization: Better payment timing and improved forecasting accuracy
- Compliance Enhancement: Reduced risk and audit preparation time
- Research Acceleration: Faster procurement cycles supporting timely research activities
Conclusion: Transforming Biotech Procurement from Bottleneck to Strategic Advantage
For biotech companies navigating complex research agendas with constrained resources, procurement automation represents a critical opportunity to enhance both operational efficiency and financial control.
By implementing a solution like ProcureDesk, biotech firms can:
- Free researchers from administrative burdens
- Provide finance leaders with enhanced spending visibility
- Ensure regulatory compliance through consistent processes
- Optimize vendor relationships for better pricing and service
- Accelerate research timelines through streamlined supply acquisition
In an industry where both scientific outcomes and financial discipline are critical to success, procurement automation delivers advantages that support both objectives. Compare AP automation software options to find the best fit for your organization’s needs.
Take the Next Step in Procurement Transformation
Ready to transform your biotech company’s procurement process? Schedule a personalized demo of ProcureDesk to learn how our comprehensive procurement automation solution can address your specific challenges and opportunities.
Our team has deep experience working with biotech firms of all sizes and can guide you through a successful implementation that delivers immediate value while supporting your long-term growth.
