Analysis of Inventory and Spend Data Enables a COPD Drugs Manufacturer Realize Savings of Up to 20% | SpendEdge
Engagement Overview: A leading pharmaceutical industry player, specializing in the manufacturing of COPD drugs wanted to standardize inventory data to analyze spend across various supply chain categories. To do so, the client approached SpendEdge to leverage their expertise in spend analysis and deep dive into the intricacies of executing a comprehensive spend analysis. A detailed […]
A leading pharmaceutical industry player, specializing in the manufacturing of COPD drugs wanted to standardize inventory data to analyze spend across various supply chain categories. To do so, the client approached SpendEdge to leverage their expertise in spend analysis and deep dive into the intricacies of executing a comprehensive spend analysis. A detailed quantitative analysis of various categories within the supply chain was carried out to analyze spend data and develop an effective spend analysis framework.
About the Client:
The client is a well-established pharmaceutical industry firm, specializing in the discovery, development, manufacturing, and distribution of innovative COPD drugs that are used to treat chronic pulmonary diseases.
The COPD drugs manufacturer was facing challenges due to their inability to analyze and compare spend levels across various categories of their global supply network. As a result, they were unable to control excess costs in procurement, distribution, and the use of drugs.
How did SpendEdge Help the Client?
- Step 1: Harmonization of inventory and spend data across supply chain categories
The first step involved the standardization and analysis of inventory and spend data sets. The adopted strategy standardized the available spend data and created a new data set by combining the spend data from several sources across the supply chain. This combined data set was then used as a single source that represents all the existing supplier relationships and their inherent characteristics while also displaying unique features within the same environment.
A detailed analysis of spend data helped identify situations where spend could be controlled using a more organized approach. It also enabled the client to answer essential procurement questions arising due to their inefficiency in spend data management.
- Step 2: Identifying and minimizing non-compliant spend
Identifying and reducing non-compliant spend helped the COPD drugs manufacturer to enhance the value delivered to TCO. The solutions at this phase offered detailed insights on ways to reduce the total cost of ownership while maintaining value.
- Step 3: Development of a bespoke spend analysis platform
The spend analysis experts at SpendEdge devised a three-step comprehensive approach that helped the COPD drugs manufacturer to gain a holistic view of spend categories. It also enhanced spend visibility and helped drive overall savings by a considerable percentage.
Key questions answered in this spend analysis study include:
Benefits of the Engagement:
This spend analysis engagement revealed that there were two major issues of concern that affected the client’s overall performance, i.e., inefficient inventory and spend data management.
The developed spend analysis framework enabled the COPD drugs manufacturer to enhance spend visibility across different supply chain categories. Our spend analysis experts also assisted the pharmaceutical industry client in improving their spend management capabilities which, in turn, helped them drive savings.
Why incorporate spend analysis?
There are substantial opportunities hidden in the spend data generated by typical spend management systems across industries. Though most enterprises are unaware of such ‘hidden opportunities’, the data is available for analysis. Spend analysis is what enables organizations to extract such valuable insights from spend data.
SpendEdge’s spend analysis solutions are designed to offer enhanced visibility into the organizational spend data in terms of part number, geographic location, business unit, and commodity, thereby enabling market leaders to clearly visualize the companies spend patterns and track expenses.
Moreover, a systematic spend analysis that ties years of consulting expertise and technological capabilities can help convert raw spend data into strategic sourcing opportunities to drive savings in industries as complex as the pharmaceutical industry.
In this spend analysis engagement, we helped a COPD drugs manufacturer enhance their spend management capabilities by devising a robust three-step approach aimed at developing a spend analysis platform. A similar approach can be adopted by other industry players to maximize the potential of their supply network and enhance spend visibility.
With several pharmaceutical industry leaders focusing on improving their spend management capabilities to drive savings by leveraging spend analysis solutions. It is essential for other players to enhance their strategies to sustain the competitive pressure. So, what are you waiting for! Invest in spend analysis and turn your challenges into a competitive advantage.
To know more about our spend analysis solutions and how it can help pharma companies