Cost Benchmarking

Lack of Cost Benchmarking

Clinical Research Organizations (CROs) face significant challenges when operating without reliable cost benchmarking data. The absence of cost benchmarks makes it nearly impossible for CROs to provide accurate bids for clinical trial services. Without comparative data, CROs often submit bids based on outdated internal models or incomplete market insights, leading to wide variances in costs. For example, when CROs are invited to submit proposals for the same trial, their bids can vary by over 100%, leaving sponsors confused about which proposal is appropriately priced. This inconsistency leads to extensive back-and-forth during negotiations, increasing delays in trial start dates. Furthermore, without benchmarking, CROs struggle to align budgets with the actual scope of work, resulting in numerous change orders once the trial is underway. Change orders increase both the administrative burden and costs, straining relationships with sponsors. CROs also risk underpricing bids to stay competitive, only to encounter financial losses when they realize their budget cannot cover trial expenses. In the current environment of high inflation and rapidly changing cost structures, relying on outdated pricing models exacerbates these challenges, making the entire outsourcing process inefficient and costly.

CORE Delivers

Strategikon’s CORE solution equips CROs with the vital benchmarking data needed to submit accurate, competitive bids. By utilizing dynamic, up-to-date pricing models, CROs can align proposals with current market rates and project requirements. CORE’s integration with Data Trove™, an industry-wide aggregation of anonymized clinical trial bid data, enhances this process, allowing CROs to compare their proposed bids against industry standards. This ensures that bids are neither overestimated nor underpriced. With AI-powered tools, CORE simplifies the budgeting process, helping CROs present clear, precise estimates that foster trust with sponsors and reduce the risk of costly change orders.

Improved Bidding and Efficiency

CROs using CORE experience significant improvements in their bidding and budgeting processes. With access to accurate benchmarks, they reduce the need for change orders, ensuring smoother trial execution and stronger sponsor relationships. The ability to compare bids to industry data upfront enables CROs to bid confidently and competitively, leading to faster contract negotiations and fewer delays. CORE’s streamlined process helps CROs save up to 10% on trial costs while increasing their chances of winning bids.

Transforming Clinical Trial Costing

Without proper cost benchmarks, CROs face inefficiencies and financial risks. Strategikon’s CORE solution provides the tools necessary to submit accurate, competitive bids, reducing change orders and improving efficiency. CORE helps CROs foster stronger sponsor relationships, win more contracts, and optimize their clinical trial management processes.