The client, a global leader in the pharmaceutical industry, had been procuring key chemical raw materials from Supplier A, who acted as an intermediary between the manufacturer and the client. Over time, this approach revealed several inefficiencies, including elevated costs, quality issues related to packaging and shelf life, and delays in material delivery. These inefficiencies negatively impacted the supply chain and production schedules.
To address these challenges, a project was initiated to streamline procurement by establishing direct sourcing relationships with the manufacturers. The aim was to reduce costs, improve quality consistency, and enhance lead time reliability. The project was divided into two phases: