Delivering value beyond product and price is crucial for CDMOs and suppliers to gain a competitive edge with their bio/pharma customers, but are the buy and sell side aligned in what constitutes value? The latest DCAT Benchmarking & Research study provides key insights.

By Patricia Van Arnum, Editorial Director, DCAT, pvanarnum@dcat.org

Value creation: a buy and sell side view
In a highly competitive environment, providing value beyond core deliverables of product and price is crucial for CDMOs and materials suppliers to gain a favored position with their bio/pharma customers, but what constitutes value? Is it technical proficiency? Operational efficiency? Supply-chain transparency? Although bio/pharma companies look for innovation from their suppliers, are suppliers providing what bio/pharma companies are seeking?

To answer these questions, the 2026 DCAT Research & Benchmarking study, Creating Value Beyond Product and Price in the Pharma Customer–Supplier Relationship, examined these issues in greater depth by gaining the perspectives from both bio/pharma companies and suppliers. The Drug, Chemical and Associated Technologies Association (DCAT) is a not-for-profit, corporate member-supported, and volunteer-led global business development association for companies throughout the global bio/pharmaceutical business ecosystem. DCAT Research & Benchmarking provides in-depth studies examining the crucial issues impacting the bio/pharma customer–supplier relationship The full report is exclusively available to DCAT Member Companies and may be found here. Some key highlights of the study are outlined below.

Bio/pharma customer expectations of value-added enhancements
Customers and suppliers agree that value-added enhancements are an important feature of the buyer–seller relationship. Among bio/pharma respondents, 38% said they expect value-added enhancements from suppliers. The other 62% said they expect them only when there is a deeper relationship at stake, such as a strategic relationship (52%) or a volume of business above a certain dollar value (10%) (see Figure 1).

A majority of CDMO respondents (61%) said all their customers expect value-adding with about a quarter saying customers expect such enhancements only when there is a deeper relationship at stake. Value-added enhancements do not seem to be as important in the customer–materials supplier relationship. Less than a quarter (24%) of materials supplier respondents said all their customers expect value-added enhancements. Two-thirds said customers expect value-added enhancements only when there is a deeper relationship at stake (see Figure 1 above).

Value creation in supplier selection
How important is value creation in supplier selection? Most bio/pharma respondents (81%) said that the offer of value-added enhancements is strongly considered when selecting a supplier. Nearly half said they are important in competitive situations, and 38% said it can be a tiebreaker when supplier proposals are otherwise similar. Only 14% indicated it is not strongly considered (see Figure 2).

In turn, the overwhelming majority of suppliers (both CDMOs and material suppliers) see enhancements as a means of signaling their commitment to the customer and differentiating their offering. CDMO respondents cited multiple reasons for offering value-added enhancements. Seventy-four percent of CDMOs said they offer them because they demonstrate their commitment to the customer, and 63% said value-added enhancements differentiate their product or service. Materials supplier responses were similar to CDMOs: 80% said they offer value-added enhancements because they demonstrate their commitment to the customer, and 73% said they differentiate their product or service.

Value-added enhancements: bio/pharma companies versus suppliers
While customers and suppliers agreed on the significance of value-added enhancements in the sourcing and relationship management processes, they differed on what those enhancements should be. Features that bio/pharma companies cited the most differed from what suppliers conidered most valuable. Bio/pharma companies find supply-chain transparency and dedicated facilities most valuable, but suppliers most often cited technical support and customization (see Figure 3).

Key takeway
The study provides valuable insights into what constitutes value creation. It shows that offering value-added enhancements in the bio/pharma customer–supplier relationship can bring benefits to both parties, so long as those enhancements truly add value. For suppliers, the benefits include differentiation from competitors and a closer relationship with their customers. For customers, enhancements can bring improvements in operational and product performance as well as a more resilient supply chain.

Further insights may be found in the full study, Creating Value Beyond Product and Price in the Pharma Customer–Supplier Relationship. The full report is exclusively available to DCAT Member Companies and may be found here.