April 17, 2023
By:EmpoweringCPO Insights Team

Amino Chloro Cephalosporanic Acid (7-ACCA)

Introduction

This Should Cost Analysis focuses on 7-ACCA (Amino Chloro Cephalosporanic Acid – C7H7ClN2O3S), a vital component in the pharmaceutical industry. EmpoweringCPO, a premier sourcing company, offers this report prepared by our skilled sourcing and procurement team. It aims to assist your strategic sourcing initiatives, providing in-depth procurement analysis, spend analytics tools, and ongoing category management expertise.

Objective

The Should Cost Analysis aims to:

  1. Facilitate negotiations with incumbent suppliers without initiating an RFP process, preserving existing relationships.
  2. Convince stakeholders from procurement and user departments to proceed with a comprehensive strategic sourcing process, based on identified savings potential.
  3. Provide valuable insights that aid in executing subsequent strategic sourcing steps.

Methodology Adopted

To ensure reliability and accuracy, we used primary and secondary research to compute various cost components. Our approach includes:

  • Material Balance/Process Input and Output Flow: Calculations based on reports published by pharmaceutical companies, including all raw materials, energy/utilities, and co-products throughout the process.
  • Capital Cost: Data derived from a reputable pharmaceutical company’s projects, adjusted to current price levels.
  • Outbound Freight: Analysis of outbound freight costs, identifying distances between origins and destinations, and air freight costs.
  • Manpower Cost: Manpower requirements based on leading pharmaceutical company’s reports, with plant capacity serving as a basis for cost calculation.

Next Steps

EmpoweringCPO offers a range of services to support your strategic sourcing project:

  • Category Profile Deck: Industry snapshot and Porter’s Five Forces analysis.
  • Identifying Leading Eligible Vendors/Participants: Assistance in identifying and evaluating potential vendors.
  • Data Collection & Cleaning: Aid in data collection, validation, and cleaning.
  • Baseline Preparation: Help in establishing a solid baseline.
  • RFP Package Preparation: Development of comprehensive RFP packages.
  • Vendor Response Evaluation: Support in evaluating vendor responses.
  • Negotiation Strategy: Assistance in developing effective negotiation strategies.
  • Vendor Shortlisting/Contract Preparation: Guidance in shortlisting vendors and preparing contracts.

Conclusion

EmpoweringCPO is dedicated to supporting your organization throughout projects like Amino Chloro Cephalosporanic Acid (ACCA) sourcing. If additional information or assistance is required for other categories, feel free to reach out. We offer a suite of procurement tools including Procurement Dashboard, Supplier Spend Analysis, Procurement Intelligence, and Procurement Consultancy.

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.

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Your aspirations drive us. Each service, whether it’s spend analysis or supplier risk management, is molded to resonate with your specific goals. Our commitment is to provide bespoke solutions that align with your vision and challenges.

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Diversity is strength. Our supplier diversity program is designed to widen your horizons, connecting you with a rich tapestry of suppliers from varied backgrounds. It’s about procuring with inclusivity and purpose.

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From ambitious startups to global frontrunners, our clientele spans various industries. They all share a vision: procuring with purpose and efficiency. They choose us because we don’t just offer services; we craft bespoke procurement experiences.

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Beginning with us is straightforward, but the impact is transformative. Reach out through our Contact page or at sales@empoweringcpo.com, and let’s pave a path to procurement excellence together.

Every saving forecasted should translate into reality. Our savings compliance tracking closely monitors and validates realized savings against projections, ensuring transparency, accountability, and confidence in your procurement strategies.

Absolutely. We believe in the unique potential of each organization. Share your aspirations, and we’ll craft a procurement narrative that’s exclusively yours, resonating with your goals and ethos.

We’re with you. Beyond strategies, we impart knowledge. Dive into our workshops and training modules designed to kindle the procurement genius within your team.

Data is a goldmine when understood. With our procurement analytics, we turn your raw data into actionable insights, highlighting opportunities for cost savings, efficiency improvements, and strategic decision-making.

In a global marketplace, knowing where to source is as crucial as what to source. Our best cost country sourcing identifies optimal sourcing locations based on quality, cost, and risk, ensuring your global operations remain competitive and resilient.

Uncertainties demand vigilance. Our supplier risk management actively monitors, evaluates, and strategizes against potential supplier risks. From geopolitical changes to supply chain disruptions, we help you stay a step ahead, ensuring continuity and stability.

An optimized item master is foundational for efficient inventory management. We refine and standardize your item data, leading to accurate tracking, reduced redundancies, and a smoother procurement lifecycle.

Procurement intelligence goes beyond traditional market research. It offers tailored insights specific to procurement activities—supplier landscapes, pricing models, and risk assessments. With EmpoweringCPO, you get actionable intelligence designed to optimize and elevate your procurement decisions.

Our custom dashboards and tools offer a holistic view of your procurement operations at a glance. By integrating real-time data, performance metrics, and analytical insights, they empower your team to make informed, agile decisions, driving efficiency and value.

Consider us an extension of your team. Our managed procurement service handles the intricacies of your procurement processes, from sourcing to payment. By leveraging our expertise, you gain the freedom to focus on core business functions while enjoying enhanced procurement efficiency.

Supplier diversity enriches your supply chain by integrating businesses from varied backgrounds, ensuring inclusivity. This not only promotes innovation and resilience but also positions your organization as a forward-thinking, socially-responsible entity.

Savings projected after strategic sourcing project should mirror savings achieved and reaslized. Our savings compliance tracking ensures this by validating and monitoring realized savings against set benchmarks and projected savings, infusing transparency and confidence into your cost-saving endeavors.

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You can reach us if you need a customized version of this report. We can also help you with category specific RFP template or with executing end to end Strategic Sourcing project.

Compliance Management Tool

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:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

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.

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