Redefining Contracting Strategy: AI Enables Pharma Cost Optimization

The pharmaceutical company initiated an ambitious project to centralize its contracting process, essential for driving 65% of its global business. They allocated $6 million and outsourced data collection to multiple vendors across 80 countries. However, the project was plagued by issues—data inconsistencies, duplications, and errors were rampant, leading to frustration among local teams burdened with manual data entry. Despite a four-year effort, only 50 countries went live with poor data quality, eroding trust in the system. The company saw no improvement in contract outcomes and faced growing dissatisfaction with the project.

Facing a dire situation, the company engaged Vamstar. Vamstar’s approach began with understanding the unique needs of local teams and the critical data sources they relied on. Vamstar set up a proof of concept (PoC), demonstrating a streamlined data flow, deduplication processes, and automated local data extraction, including RFP documentation uploads. Leveraging the company’s existing Salesforce infrastructure, Vamstar integrated its Data Orchestration Engine and Pricing Co-Pilot within Salesforce, automating and optimizing pricing decisions with real-time market intelligence. This integration allowed for minimal training and a smooth transition, enabling faster, data-driven decisions that significantly improved the contracting process.

Vamstar’s intervention quickly showed results. Within two weeks, a successful PoC went live in one country, setting the stage for rapid scaling. Within a year, 25 high-impact countries were fully live again, with an impressive 86% adoption rate. The company experienced a 73% improvement in contracting process efficiency, a 17% increase in win rates, and a 9% margin expansion across the region. Vamstar’s solution not only restored trust in the contracting process but also delivered measurable business growth, reinforcing the company’s competitive edge in the global market.