Moving towards bespoke delivery models
The scale of the pressure being felt across the sector is driving the industry to innovate and find new ways of working. We are seeing clients becoming more open to alternative management models, such as alliancing and two-stage procurement strategies with the aim of gaining greater visibility over costs and schedule.
More than half of our survey respondents agreed that they have started to shift towards considering non-traditional delivery models over the past year. Clients are exploring other models in pursuit of better outcomes, a more balanced approach to risk and stronger alignment with the supply chain.
Partnership and Alliancing models are gaining steady ground with many of our clients. Such partnerships are characterised by longer-term commitments, providing more time to build the right skills and expertise. With this more open and collaborative approach, clients and suppliers are better able to work together to solve the challenges posed when it comes to questions of time and cost.
Clients recognise the need to engage in ever-closer relationships with their supply chain to bring essential products to market quickly. Through strategic partnerships, the industry can identify ways to control supplier costs more acutely, whilst also navigating global material labour shortages.
These new models do not come without trade-offs. Adopting them can open up access to a wider pool of local suppliers where markets are stretched – but these suppliers in turn need greater management and control to mitigate risk and maximise project performance.
Ultimately, there isn’t a one-size-fits-all approach and regions are at differing places on this journey. What’s important is for project teams to make informed decisions on the right delivery model for each project and each market.
Figure 1 outlines a high-level comparison of some of the main delivery models to show the relative merits of the various approaches that are available.
Figure 1:
Indicative comparison of delivery results
Key: ● Least Good, ●● Average, ●●● Best
Note; The selection of the right delivery route is contingent upon the region and supply chain availability. All options must be considered, especially when faced with a warming market.
What is consistent across the sector globally is an increasing awareness that setting up major projects for success relies on access to key data and early engagement to gain an understanding of the local supply chain’s capability and capacity.
This was the driving force behind the establishment of our Life Sciences Benchmarking Club as major players seek to understand not just their own data and performance, but also that of their peers.
To take this one step further, many life sciences companies are looking at the value of more centralised governance setups such as a Programme Management Office (PMO). A PMO sets standards for execution, incorporates corporate and functional strategies into execution plans, and provides a vehicle for pipeline planning along with a host of other benefits. From a data management perspective, it takes on responsibility for global data benchmarking and new asset performance, creating value for our clients by providing access to industry data to make better investment decisions.
We continue to see clients move away from single roles and resource augmentation into managed service models, to leverage not just resources but data and tools. Under this model, clients are able to pursue a best-of-breed approach through longer-term appointments that focus on a mutual investment in talent. They also allow for leaner client capabilities and greater consistency in approaches to digital and data, freeing client time to focus on other strategic priorities in core areas.
“With demands on the sector expected to continue, clients will need to continue this trend, being open to alternative delivery models and a more collaborative, involved approach.“
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