Leveraging Demand Aggregation Solutions to Help a Pharmaceutical Company Achieve Savings of $2.1 Million – A SpendEdge Success Story
The Business Challenge The client, a leading pharmaceutical company in the US, was facing predicaments in determining the aggregate demand for the total sum of medicines produced by the company. The fragmented and uncertain ordering patterns, different labeling and packaging configurations, and underutilization of available capacity were further increasing the spend of the company. They [...]READ MORE >>
The Business Challenge
The client, a leading pharmaceutical company in the US, was facing predicaments in determining the aggregate demand for the total sum of medicines produced by the company. The fragmented and uncertain ordering patterns, different labeling and packaging configurations, and underutilization of available capacity were further increasing the spend of the company. They wanted to reduce their overall cost by increasing supply chain visibility.
Is poor supply chain performance impacting the spend of your company? Get in touch with our experts and know how analyzing the aggregate demand can help your organization to improve the efficacy of their supply chain.
To help the pharmaceutical company, the experts at SpendEdge delivered demand aggregation solutions and increased efficiency and transparency in the procurement of medicines. They also adopted a comprehensive two-step research methodology comprising of primary and secondary research coupled with scrupulous qualitative and quantitative data collection techniques.
The demand aggregation solution helped the pharma client to better negotiate prices and facilitate the agreement of contracts with negotiated prices for different volumes. The company upgraded its procurement process as discretionary resource allocation methods were exacerbating existing inefficiencies and process transparency. The demand aggregation solution also helped the company in their large-scale medicine procurement activities and improved the efficacy of its supply chain. This modified the frequency of actual delivery and payment schedules and ensured the timely allocation of resources for payments.
Request a free proposal and know how our experts can help you understand different components of aggregate demand and provide effective demand aggregation solutions to lower spend.
In a span of three months, the demand aggregation solution helped the pharmaceutical company to successfully reduce their financial costs and achieve savings of US $2.1 million. Furthermore, it helped the company to establish a large-scale competitive procurement process and implement strategic purchasing practices.
What is Demand Aggregation?
Demand aggregation is a method that provides “visibility” into the purchasing requests through the process of coordinating and consolidating individual requirements for companies. Often, when procurement departments working within large companies face various organizational challenges that make it difficult to analyze the spend of the enterprise, demand aggregation can be a highly valuable strategy. It helps companies to improve savings, lower supply management TCO, and provide greater assurance of supply.
Want to know how demand aggregation can help your organization? Request a free demo below and gain detailed insights into our portfolio of aggregate demand solutions.