Optimized Supplier Negotiations for Robust Savings
Globally operating pharma manufacturer in procurement
Savings achieved from supplier negotiations were perceived as insufficient by internal stakeholders.
The challenge
The situation
The savings achieved from supplier negotiations were perceived as insufficient by internal stakeholders. To close this perception gap and realize robust cost savings, the negotiation processes had to be fundamentally optimized, with a focus on data quality, standardization and upskilling.
Our approach
What we delivered
Improvement of data quality as a negotiation basis, because without reliable figures neither the outcome nor the perception gap could be closed.
Standardization of negotiation practices, so that across 50 negotiations the outcome does not depend on the individual negotiator.
Upskilling of the procurement team, so that the new practices are still applied once the project has ended.
The outcome
Results & impact
EUR 200 million savings
Realized, robust savings from the negotiations.
50 supplier negotiations
Number of supplier negotiations conducted in an optimized way.
EUR 1 billion purchase spend
Purchase spend of the business unit addressed.
In summary
Procurement negotiates on the basis of better data and standardized practices; the realized savings are robust and transparent for stakeholders.
Related expertise
Supplier Development & Qualification →
Risk-based assessment, quality agreements and supplier performance management
Compliant Procurement Excellence →
Auditable procurement processes, SOPs and risk-based supplier categorization
Supply Chain Management →
Supplier performance management and the inventory strategy for critical GMP materials
Supply Chain Governance →
Dual-sourcing concepts and quality agreements for GMP-critical suppliers
Similar projects
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Sources
- Entourage project experience (anonymized)
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