Engagement Overview:
A leading player in the pharmaceutical industry was looking at streamlining their procurement process to maximize savings across their supply networks. The failure of their inefficient sourcing strategies had greatly impacted their overall business revenue, as a result of which they wanted to leverage strategic sourcing analysis to gain a competitive advantage.
SpendEdge was approached by the anti inflammatory drugs manufacturer to leverage its expertise in offering strategic sourcing solutions for players across industries. The strategic sourcing engagement entailed a quantitative analysis of various supply chain categories to devise a robust sourcing strategy.
About the Client:
A top-notch manufacturer and supplier of anti inflammatory drugs operating in the U.S., which is well-known for receiving the WHO and GMP certificates for excellence in delivering quality products.
Business Challenge:
The pharmaceutical industry client was facing several challenges owing to their inefficient sourcing strategy.
How did SpendEdge Help the Client?
- Step 1: Conducted an internal needs analysis
Strategic sourcing begins with the process of benchmarking the current performance of the client to identify internal needs and targets before devising the appropriates sourcing strategy. This involved the collection of different types of data from different departments across the organization.
- Step 2: Analyzing the suppliers market and gathering relevant supplier information
This step revolved around the identification of potential suppliers that are feasible sources of raw materials. The potential supplier base was then categorized based on their ability to cater to the dynamic needs of the anti inflammatory drugs manufacturer.
- Step 3: Developing and implementing a sourcing strategy
The development of an appropriate sourcing strategy was dependent on the data collected in the first two phases of the engagement. However, determining the right sourcing strategy for a business depends on several factors such as the competitiveness in the supply market, the overall business strategy, and the organization’s risk tolerances.
Key questions answered in this strategic sourcing analysis include:
Benefits of the Engagement:
The strategic sourcing experts at SpendEdge devised a three-step comprehensive approach to help the anti inflammatory drugs manufacturer devise an effective strategy. With the help of strategic sourcing, the client was able to achieve cost reduction and improve supplier relationships. The proposed strategic sourcing framework also enabled them to gather and analyze spend data worth more than $50 million. This enabled them to categorize and deploy the right sourcing strategy and negotiate favorable terms with suppliers, taking advantage of the significant economies of scale. The solution offered also included the development of category-specific sourcing strategies, TCO models, and a detailed supply market analysis.
Why is strategic sourcing essential in the pharmaceutical industry?
Strategic sourcing offers pharmaceutical industry players with several new opportunities to assess the current state of their sourcing strategies and empowers them to effectively use resources and leverage supply market intelligence in devising suitable supply chain strategies.
At SpendEdge we collaborate with pharma market leaders, drug manufacturers, medical device manufacturers, and other firms operating in the pharmaceutical industry to help them devise precise sourcing strategies. Our strategic sourcing solutions are aimed at optimizing the supply chain while driving value and cost reductions to ensure our clients gain the strategic advantage to thrive in a competitive market landscape.
Our Findings:
Our market expertise enables us to understand the unique nature of every market segment, and the complexity in the pharmaceutical industry is what drove us to leverage strategic sourcing analysis to devise robust sourcing strategies that proved to be valuable for the anti inflammatory drugs firm in the long run.
SpendEdge’s strategic sourcing solutions are guided by the principles of supply market intelligence to help clients enhance their overall supply chain efficiency. In this strategic sourcing engagement, the three-step approach aided the pharmaceutical industry client to integrate the new sourcing strategies.
While inefficient sourcing strategies tend to paralyze most supply chain functions. Successful organizations are the ones that can effectively assess and implement effective sourcing strategies. To do so, our strategic sourcing team helps companies adapt to their culture by working seamlessly with industry stakeholders and decision makers to analyze categories within the pharmaceutical industry.
The strategic sourcing team at SpendEdge comprises of subject matter experts with wide-ranging individual expertise. This enables us to understand what is important to pharmaceutical industry clients and offer custom recommendations and unique solutions to tackle their supply chain challenges.
If your organization is on the lookout for an objective way to reduce procurement related costs, we’re here to help. Wait no more! Go ahead and get in touch with our strategic sourcing experts to develop custom configured engagement models and procurement research deliverables.
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