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Pharmaceutical
Step Change & Sustainability

 

 

Situation

   

 

Solution

   

 

  • One of the world’s largest pharmaceutical companies

  • A complex, decentralized purchasing organization

  • Rigid Sourcing process with a “one way” approach for all categories and sub categories

  • Methods and tools were not comprehensive

  • e-Enablement was limited to auctions supplied through external provider Skills gaps and no clear development or career paths for procurement professionals

  • Desire to create self-sustainable organization in terms of process, competence and enablement

T he organization had already improved its procurement capability. However it recognized that further benefits could be delivered through a more focused program of improvements.

There was a methodology in place, but this was increasingly seen as too complex for some categories and too simple for others.

The organization was suffering initiative overload and therefore Procurement was not getting the business involvement that it needed.

There was no clear development path in Procurement.

e-Enablement was not used very effectively.

   
  • Created a master plan for next level of organizational improvement

  • Developed and implemented a more efficient and effective segmented sourcing approach to Sourcing Management

  • Introduced a robust Quality Assurance mechanism

  • Comprehensive review of processes to develop and introduce new tools and techniques

  • Supported development and enablement of complete spectrum of processes and tools

  • Deployed education program at both individual and organizational level in order to achieve self-sustainability

The team developed a master plan to deliver the next step change in procurement performance.

A segment sourcing approach (SSA) was developed to ensure that business involvement was focused where it was most needed (e.g. upon strategic and complex categories).

Gaps in the methodology were plugged, but SSA ensured that it was equally applicable to complex and simple categories.

Education was focused on both the individual and the organization.

 
   

Benefits

 
  • Clear road map of activities to secure the next phase of improvement

  • Sourcing Management process tailored to suit specific categories ensuring effective deployment of resources and more rapid delivery

  • Collaborative e-Enabled management platform driving efficiency, consistency and knowledge sharing

  • Quality Assurance process and people improvement to ensure robust credible Source Plans

  • Additional process tools and techniques to ensure high quality delivery e.g.:

  • Commodity Management

  • Project Management

Procurement’s profile and its contribution to the business continued to grow.

SSA reduced the involvement of the business on non-critical projects and saved 19 FTE years of effort over 100 projects. Business involvement in critical projects improved.

Benefits were secured on average 50% earlier than before.

The Procurement team felt more engaged and valued.
 

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