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.
Standardisation 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 →
Directly addresses the qualification and steering of suppliers, the basis on which robust negotiation results are built.
Compliant Procurement Excellence →
Focuses on professionalising the procurement function, fitting the standardization of negotiation processes and upskilling of the procurement team in the case study.
Supply Chain Management →
Addresses supply-chain optimization for stable supply and controlled working capital, directly linked to the case study's goal of sustainable cost savings.
Supply Chain Governance →
Concerns building resilient, well-steered supply chains and complements the company-wide structures and tools established for the procurement function in the case study.
Similar projects
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Sources
- Entourage project experience (anonymised)
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