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EmpoweringCPO, a globally recognized procurement services company, dedicates itself to delivering unparalleled value to its clients by reshaping their procurement strategies. By employing intricate procurement analytics and intelligence, we provide solutions that align with our client’s unique business requirements, facilitating significant cost savings and efficiency gains.
In this comprehensive case study, we delve into a transformative project that we undertook for a leading healthcare provider grappling with a disorganized and inefficient pharmaceutical sourcing process. The project aimed to overhaul the client’s procurement strategy, implementing a centralized, streamlined system that prioritized data-driven decision-making.
A Fragmented Framework The client, a prominent healthcare provider, was wrestling with an ineffective and decentralized pharmaceutical sourcing model. The existing framework resulted from individual doctors’ and medical experts’ varied preferences for drugs and brands, leading to a disjointed procurement landscape. This model overlooked the importance of a comprehensive spend analysis, leaving potential savings unexplored.
Navigating this complex landscape required us to overcome two substantial challenges:
Our phased, strategic approach to the RFP process yielded significant improvements:
Beyond the significant financial gains, our approach delivered numerous strategic benefits. It resulted in enhanced supplier relationships, improved risk management, and increased diversity among suppliers. Furthermore, it created a more transparent and controlled procurement process that could be tracked and adjusted as necessary, leading to better resilience and preparedness for future sourcing challenges.
Our services extend beyond mere cost savings; they optimize spending, enhance supplier relationships, and bring resilience to our clients’ procurement systems. This case study illustrates our commitment to empowering businesses with advanced procurement solutions. EmpoweringCPO stands poised to guide your business toward procurement excellence, transforming your challenges into opportunities for growth.
Strategic Overhaul of Pharmaceutical Drugs Sourcing
EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.
Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:
As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:
The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.