CDMO, Vendors & Contracts

How companies manage outsourced partners: CDMOs and CROs, contracts and statements of work, milestones, change orders, and the invoices and accruals behind them.

Key terms & definitions

13 terms in this pack

ALLIANCE

___ management: the team that owns the vendor relationship

CDMO

Outsourced partner that develops and manufactures your drug (acronym)

CHANGEORDER

Document that revises the scope or price on a contract

CONTRACT

The agreement whose activity you analyze to size an accrual

CRO

Outsourced partner that runs your clinical research (acronym)

DELIVERABLE

A defined output a vendor must provide under a SOW

INVOICE

The bill a vendor sends for work performed

MILESTONE

A contract trigger event that can drive a payment or accrual

PROCUREMENT

Function that sources vendors and issues purchase orders

RETAINER

A fee paid up front to secure a vendor's services

SOW

Statement of Work that scopes a vendor engagement (acronym)

SUPPLIER

Another word for a vendor in the supply chain

VENDOR

What a CDMO is, from a procurement point of view