Harnessing technology for smarter R&D spend management

In this blog, Ivana Visnjic-Lynch, Marketing Manager at ZAGENO, discusses the race for breakthrough therapies and the need for  effective R&D spend management which enables technology to unlock the future.

Why spend management is a strategic priority

Procurement has often been treated as a back-office task. In R&D, though, it directly influences innovation timelines and costs. Without visibility, organisations face:

• Duplicate orders across teams
• Overstocked inventory that expires before use
• Untracked supplier rebates and contract terms left unrealised
• Delays and uncertainty that slow research progress

Greater transparency flips this dynamic. When procurement data is centralised and accessible, scientists, finance, and executives can collaborate on decisions that keep projects moving and budgets aligned.

The role of digital tools in biotech procurement

Digital procurement platforms have reshaped R&D spend management, consolidating purchases into a single system and replacing emails and spreadsheets with structured workflows. The next wave of transformation is being driven by automation and artificial intelligence:

• Automation handles routine approvals, invoice matching, and compliance checks, reducing administrative burden and freeing people for higher-value work.
• Real-time budget tracking gives teams immediate insight into spend against plan, helping them pivot quickly when priorities shift.
• AI-powered analytics highlight spending trends, identify tail-spend inefficiencies, and suggest opportunities for consolidation.
• Natural language search makes it easier for scientists to find the right products without navigating procurement jargon.

These technologies don’t replace human expertise - they augment it, providing insights and speed that manual systems cannot match.

Benefits of automation and AI in R&D spend management

Adopting automation and AI in procurement is already delivering measurable results across the life sciences sector. Recent case studies show that organisations have achieved:

• Faster ordering and approvals — from a 50% reduction in ordering time at a large pharma, to a 75% reduction at a global research institute.
• Significant cost savings — one biotech avoided $132,000 in costs through automated ordering, while another saved $326K by enabling scientists to self-serve.
• Productivity gains without added headcount — a four-person biotech scaled its research team by 250% without expanding procurement or lab operations staff.
• Efficiency in supplier management — procurement teams have saved 2–4 weeks per supplier onboarding, and one incubator reported $1.3 million in labour cost savings through streamlined processes.
• Scientist time reclaimed — smaller biotech teams reported saving thousands of hours annually, allowing researchers to spend more time at the bench instead of chasing orders.

Together, these outcomes highlight that automation and AI are not just about efficiency. They create space for scientists to focus on discovery, finance teams to ensure compliance, and leadership to align spend with strategy.

Getting started: applying smarter spend management

For organisations beginning this journey, the first step is not a full system overhaul, rather building momentum through small, achievable wins. Three actions can help:

• Audit current processes – Map how lab supplies, equipment, and services are being purchased today, and identify where visibility is missing.
• Focus on high-impact categories – Start with suppliers or product lines that represent the bulk of your spend; improvements here deliver the fastest returns.
• Explore digital enablers – Pilot a procurement platform or AI tool in one department or project to test the impact before scaling.

These steps don’t just improve efficiency; they create a foundation for the transparency and agility needed to manage R&D spend strategically.

Looking ahead: the future of R&D spend management

The next decade will see procurement evolve from transactional to transformational. Three trends are already emerging:

1. Predictive procurement: AI models will forecast demand for reagents and consumables based on experimental cycles, reducing last-minute orders and stockouts.

2. Sustainability and resilience: Digital tools will increasingly track not only cost but also environmental impact, supplier diversity, and carbon footprint, aligning spend with ESG goals.

3. Data as a unifier: Procurement data will become the common language connecting scientists, CFOs, and policymakers, enabling decisions that are financially sound, scientifically relevant, and strategically aligned.

This future is not speculative. The building blocks exist today. Organisations that embrace them will be positioned to accelerate discovery while building resilience into their supply chains.

Our perspective

As a BIA member, ZAGENO sees firsthand how life sciences organisations are using technology to make procurement more transparent, efficient, and resilient. From automation that saves researchers time at the bench to AI insights that help finance teams anticipate spend, smarter approaches are already shaping the future of R&D.

What’s next?

Harnessing technology for spend management isn’t about cutting corners; it’s about enabling science to move faster and with greater confidence. If you’d like to explore practical steps for your organisation, connect with us to learn more.