
Dose #29: Procurement as a Strategic Driver of Profit in Pharma with Elena Polansky (Phibro Animal Health)
In this episode of SCW for Pharma, Evren Ozkaya welcomes Elena Polansky, Chief Procurement Office/ Vice President Global Sourcing & Procurement at Phibro Animal Health, to explore the strategic role of procurement in the pharmaceutical industry and how digitalization and AI are reshaping the function. The conversation begins with Elena's career journey from consulting to more than 20 years in the pharmaceutical industry, including leadership roles at Pfizer and BioMarin and lastly Phibro Animal Health. Having served as Head of Procurement at Pfizer and Chief Procurement Officer at BioMarin, Elena shares how she now brings her experience to small and medium-sized pharma companies through Somerset Phibro Animal Health, with a core thesis that a strong procurement organization can drive profit. Evren and Elena then discuss how procurement fits into the end-to-end pharmaceutical supply chain. Elena argues that procurement should not be viewed simply as a cost center. In an industry where delivering high-quality medicines to patients is mission critical, procurement influences much more than price. Decisions around suppliers, CDMOs, and in-house production can directly impact a company's strategy, capacity, quality, and risk management. The discussion then shifts to digital transformation and AI. Elena highlights the opportunity to use technology to reduce friction throughout the procure-to-pay cycle, from purchasing and catalogues to legal and payment processes. She also points to the challenges created by fragmented ERP systems, particularly in larger organizations where technology does not always provide a single source of truth or easily actionable information across the end-to-end supply chain. Evren and Elena explore how AI can transform the relationship between buyers and suppliers by enabling faster analysis of data, improving visibility into spending, and automating repetitive procurement activities. However, Elena emphasizes that human-in-the-loop processes will remain essential, with AI supporting decision-making rather than replacing the judgment and expertise of procurement professionals. They also discuss the importance of supplier relationships, particularly in a capacity-constrained CDMO and CMO market. Elena explains why pharma companies need to carefully balance their supplier base: maintaining relationships with smaller suppliers can provide valuable innovation, while excessive supplier fragmentation can create unnecessary complexity. Selecting contractors with the right culture, technology infrastructure, and long-term vision is equally important for building sustainable partnerships. The conversation also examines pricing transparency and the importance of sustainable supplier economics. Elena highlights how factors such as energy prices, tariffs, and changing market conditions can affect supplier costs, while emphasizing that both pharma companies and contractors need to approach pricing transparently rather than using cost changes opportunistically to expand margins. Finally, Evren and Elena discuss the opportunities procurement can create for small and medium-sized pharma companies. With margin expansion becoming an increasingly important priority for CFOs and finance leaders, Elena identifies procurement as an area where companies can find relatively quick wins by evaluating whether their suppliers truly support their business strategy. Evren and Elena conclude by discussing career advice for the next generation of procurement professionals. Elena emphasizes the importance of maintaining relationships, continuously learning, understanding the broader business beyond cost, and getting closer to the manufacturing floor. For procurement professionals, understanding quality, innovation, reliability, and business strategy alongside cost is essential to becoming a true strategic partner.





