Market Research Preferred Vendor Programs: Selective Supplier List Benefits and Tips

This is the first installment of a two-part series examining the issues related to managing the preferred vendor process. This issue explores the benefits of the selection method, and January's edition will consider the potential drawbacks.

Industry mergers and acquisitions have compelled pharmaceutical firms to improve their bottom line. In an effort to contain budgets and standardize suppliers, organizations often use preferred vendor lists to obtain greater value from their market research providers. When successfully managed, these programs can:

• Build closer relationships with a pre-qualified, select group of pharmaceutical research firms chosen for their industry experience, capabilities, unique strengths, project management and quality control standards
• Develop a mutual understanding of business needs through on-going, repeat engagements
• Achieve greater efficiencies by defining expectations, project requirements, policies and standard operating procedures upfront
• Realize cost savings through regulated, competitive pricing
• Breathe new life into research studies by infusing novel ideas and approaches

Becoming a "preferred vendor" has become the critical first step for gaining work with many major pharma firms, yet making the list doesn't guarantee future research engagements. It's up to the supplier to communicate their inclusion on the list and prove how they can add value to client research efforts.

Once the list is established, program benefits should be promoted internally to encourage its use. Current vendors should be monitored and every opportunity should be given to best-of-class suppliers with proven therapeutic expertise and analytic competencies to compete for future business. Consider these tips when managing a preferred vendor list:

• Detail the skill sets of each selected vendor so internal users can determine which are appropriate for an RFP
  
• Identify vendors that fill a gap or can compete with research firms you've historically used
• Encourage compliance within your company
• Adopt a grading and classification system to track those vendors consistently providing quality work and their particular strengths
• Foster communication and trust among your research suppliers

Ultimately, the preferred vendor process should result in the client and vendor getting to know each other better through a more exclus