Global Partner. Integrated Solutions.

Reinventing a Supplier-Dependent Supply Chain through Direct Sourcing

Client : Streamlining the Procurement for a Global Leader in Healthcare

Service Offered : Strategic Sourcing, Process Improvement

Sector / Industry : Healthcare

Overview
Overview
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:
Solution
Solution
  • Spend and Volume Analysis: Conducted end-to-end analysis for identification of materials with high annual spend and volume sourced via Supplier A
  • Stakeholder Engagement: Cross-functional collaboration with the Quality, Planning, Site, and Warehouse teams for risk evaluation, material identification, and approval
  • Implementation Plan: Structured change control process was initiated for transition of the material sourcing without disruption to operations
Impact
Impact
  • Quality Improvements: After the implementation of Phase 1, the solution has delivered tangible and intangible results:
  • Cost Savings: ~23% of raw material costs were reduced by eliminating intermediary markups
  • Lead Time Improvement: Achieved up to 30% faster deliveries through direct manufacturer engagement

Case Studies

Related Case Studies

Join our mailing list To receive our latest insights

Inquire Now

Or

Reach out to us at ThinkNext@nexdigm.com

Or

Reach out to us at ThinkNext@nexdigm.com