Case study · Strategic sourcing
$29M in savings: API category sourcing for a global pharmaceutical company
A global pharmaceutical company wanted lower costs on its active pharmaceutical ingredients without risking quality or supply.
The challenge
Active pharmaceutical ingredients were a large, concentrated share of spend. Prices had drifted with suppliers who knew they were hard to replace.
Mohannad Gomaa served as category lead, from spend analytics and should-cost models through supplier strategy and negotiations.
What we did
- Built the API spend analysis by molecule, supplier and site.
- Developed should-cost models showing where prices sat above cost.
- Consolidated suppliers where quality and supply risk allowed.
- Led category negotiations with the cost models on the table.
Impact and results for the client
- $29M of annual savings
- Better price, service and quality from the retained supplier base
- Should-cost models the category team kept using
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Other results.
return on fee from supplier consolidation across five operating companies.
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Read the case study →inventory savings and +18% forecast accuracy across eight global sites.
Read the case study →Facing a similar situation?
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