5 ways to tackle hidden expenses in your pharma facilities

In an industry facing significant cost and regulatory pressures in research and development (R&D) and manufacturing — where every percentage point of profit margin matters — pharmaceutical companies are turning their attention to an often-overlooked goldmine of potential savings: their facilities. 

Nearly half of life sciences companies worldwide are pursuing cuts to their facilities’ operating costs, according to JLL’s Future of Work research, as even small savings can bolster their bottom line.

This emphasis on cost control is becoming more pronounced as facilities management (FM) evolves into a critical business expense. Recognising the complexity of these non-core operations, many pharmaceutical companies are outsourcing FM to concentrate on their core business.

Beyond the obvious costs, a silent drain on profitability often lies in the hidden expenses within FM and procurement operations.

Equipping real estate leaders and procurement experts with actionable strategies is essential to uncover and eliminate these commonly overlooked costs. 

Smart technologies and effective space management can significantly enhance pharmaceutical facility operations. Simultaneously, adopting data-driven procurement strategies with strong negotiation techniques allows companies to streamline costs. Together, these approaches improve operational efficiency and maximise value. 

1. Identify and reduce operational inefficiencies

Uncovering hidden costs in pharmaceutical facilities begins with a thorough review of workflow problems that occur in everyday activities. These often-overlooked inefficiencies can significantly impact the bottom line.

A primary area of concern is energy, particularly within the specialised GxP environments crucial for pharmaceutical manufacturing. For instance, clean rooms, with precise requirements for temperature, humidity and air quality control, are inherently energy-intensive. 

These energy demands can be amplified by issues such as suboptimal heating, ventilation, and air conditioning (HVAC) systems, ageing equipment, or the failure to employ automation in building management systems, leading to unnecessary operational expenses.

Beyond energy consumption, the maintenance of specialised pharmaceutical equipment represents another significant source of hidden costs. Unexpected breakdowns can cause costly downtime, forcing urgent and unplanned expenditures on specialised parts or skilled technicians. For critical equipment, transitioning to a targeted, proactive maintenance approach is vital to ensure business continuity and prevent incidents that could impact licensing or regulatory compliance.

Inefficient planning also inflates costs. A prime example is the delay of access for cleaning crews, resulting in after-hours work and overtime expenses.

To effectively mitigate these financial risks, pharmaceutical companies should prioritise standardising equipment and maintenance protocols across all GxP and non-GxP environments. 

2. Enhance space utilisation

Smart space enhancements offer another potent strategy for combatting hidden costs in pharmaceutical facilities. By using advanced technologies like sensors and heat mapping, companies gain crucial visibility into operational flow and occupancy patterns, revealing underused or dead spaces. 

With this understanding, companies can adopt targeted strategies to update their space and extract greater value. One example is on the manufacturing floor, where analysing production line space allocation and process flows can uncover opportunities to maximise space usage.

Armed with this data, companies can strategically repurpose underused areas into collaborative workspaces or adjust maintenance schedules in low-traffic zones to cut operational costs.

These proactive space enhancements not only reduce hidden costs but also foster a more efficient operational environment.

A pharmaceutical company analysed its office occupancy data and discovered that only 30% of their workforce typically came into the office on Fridays. Consequently, they made the decision to shut down on those days for scheduled maintenance during standard working hours, a far more economical approach than overtime shutdowns.

Ready to boost your bottom line? Connect with a JLL expert today for a personalised assessment of your pharmaceutical facility and discover the cost-saving opportunities hiding in plain sight.