Sai Krishna Garrepalli (PMP)’s Post

Optimizing tail spend in Pharma BOM / Bill of Materials can yield quantifiable improvements: 1.Analyze Spend Data: Example: Identify that 10% of tail spend items account for 15% of total costs, leading to targeted management of these high-impact items. 2.Standardize and Consolidate Suppliers: Example: Reduce the number of suppliers from 50 to 20, potentially saving 5-10% on procurement costs through better negotiation. 3.Negotiate Bulk Contracts: Example: Secure a 10% discount on bulk orders, translating to savings of $500,000 annually on raw materials. 4.Automate Procurement Processes: Example: Reduce procurement processing time by 25%, translating into labor cost savings of $200,000 per year. 5.Enhance Supplier Relationships: Example: Achieve a 7% reduction in costs through improved supplier terms and priority service agreements. 6.Implement Spend Visibility Tools: Example: Increase spend visibility by 15%, leading to a potential cost reduction of $300,000 by identifying and eliminating inefficiencies. 7.Regularly Review and Adjust: Example: Quarterly reviews could uncover additional savings opportunities, achieving a 5% further reduction in tail spend annually. These numerical targets demonstrate the potential for significant cost savings and efficiency gains by effectively managing tail spend.

A global clinical services and medical device provider faced challenges with a fragmented, decentralized procurement function. With minimal procurement tools, rampant rogue buying, and missed opportunities for global synergies, they lacked control over spend and faced financial and legal risks. Velocity Procurement was able to partner with their procurement team to create strong sourcing policies, processes, templates, and procurement scorecards. We were able to centralize procurement,  complete 80 strategic sourcing projects, and achieve nearly $50MM in savings—an average of 25% across all categories. This transformation positioned procurement as a key value driver within the organization, setting the stage for sustainable growth! Follow the link below to read the full case study. https://lnkd.in/gwC3F7qu #ProcurementExcellence #StrategicSourcing #SupplyChainTransformation #Healthcare #ProcurementInnovation

🌟 𝗠𝗲𝗱𝘁𝗲𝗰𝗵 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗼𝗿 𝗧𝗮𝗿𝗴𝗲𝘁𝘀 €𝟰𝟬𝗠 𝗮𝗻𝗱 𝗕𝘂𝗶𝗹𝗱𝘀 𝗜𝗻𝗱𝗶𝗿𝗲𝗰𝘁 𝗦𝗽𝗲𝗻𝗱 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻 🌟 Facing a healthcare market in perpetual flux, a leading pharmaceutical group partnered with H&Z to revolutionise their procurement function and achieve ambitious cost-saving goals. 🔍 𝗖𝗹𝗶𝗲𝗻𝘁 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲: Against a backdrop of economic turbulence, the organisation recognised the need to enhance procurement efficiency to stay competitive. Their existing procurement systems were robust yet scattered, necessitating alignment with strategic goals to maximise efficiency and leverage economies of scale. 🚀 𝗛&𝗭 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵: H&Z crafted a tailored strategy focusing on several key areas: 𝟭. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁: Assessing procurement practices to align with long-term objectives and savings targets. 𝟮. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗶𝗻𝗴: Redesigning procurement governance, mandates, roles, and responsibilities. 𝟯. 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻: Developing maturity in 12 indirect categories, identifying approximately €40 million in savings potential. 𝟰. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗖𝗵𝗮𝗻𝗴𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Ensuring seamless integration of new strategies with senior management coordination. 📈 𝗥𝗲𝘀𝘂𝗹𝘁𝘀: - 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆: Improved operational efficiencies and reduced expenditures. - 𝗖𝗼𝘀𝘁 𝗦𝗮𝘃𝗶𝗻𝗴𝘀: Substantial long-term savings exceeding initial €40M projections. - 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗮𝗻𝗱 𝗖𝗼𝗻𝘁𝗿𝗼𝗹: Centralized procurement approach with enhanced visibility and control. - 𝗖𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: Fostered a strategic procurement culture aligned with organisational goals. Unlock your organisation's potential with streamlined procurement and substantial cost savings. Our tailored approach can transform your operations. 🔗 𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 on how H&Z can help you achieve Procurement Excellence, get in touch today! Dr. Matthias Mette, Ralf Schulz Find out more here: https://lnkd.in/d9WcVUSq #Procurement #CostSavings #HealthcareInnovation #OperationalEfficiency #headhearthand

📊 Key Procurement KPIs for the Healthcare Sector 🏥 1. Supplier Lead Time: Time from order placement to delivery. 2. Cost Savings: Savings achieved through negotiation and bulk purchasing. 3. Procurement Cycle Time: Time taken from requisition to purchase order completion. 4. Supplier Compliance Rate: Percentage of suppliers adhering to regulations and contracts. 5. On-Time Delivery: Percentage of orders delivered on or before the expected date. 6. Purchase Order Accuracy: Correctness of orders placed vs received. 7. Inventory Turnover Rate: Efficiency in managing stock without over-purchasing. 8. Contract Compliance: Adherence to terms and pricing as per supplier contracts. 9. Procurement ROI: Return on investment from procurement activities. 10. Supplier Quality Rating: Evaluation of supplier performance and product/service quality. Measuring these KPIs ensures efficiency, cost-effectiveness, and compliance in healthcare procurement operations. #Procurement #HealthcareSupplyChain #KPIs #SupplyChainManagement

A global clinical services and medical device provider faced significant challenges due to a fragmented and decentralized procurement function. With limited tools, widespread rogue buying, and missed opportunities for global synergies, they struggled to control spending and encountered both financial and legal risks. Velocity Procurement partnered with their procurement team to develop robust sourcing policies, processes, templates, and scorecards. We centralized their procurement efforts, completed 80 strategic sourcing projects, and achieved nearly $50 million in savings, averaging 25% across all categories. This transformation established procurement as a key value driver within the organization, laying the groundwork for sustainable growth. Follow the link below to read the full case study. #ProcurementExcellence #StrategicSourcing #SupplyChainTransformation #Healthcare #ProcurementInnovation

As a Procurement Specialist focused on medical equipment, I recently led a project that transformed our sourcing and supplier management approach, resulting in a 30% increase in procurement efficiency. Here’s a snapshot of how we did it: 📈 Problem Our organization faced rising costs and delays in sourcing essential medical equipment due to supplier inconsistencies and regulatory requirements. 🔍 Solution Enhanced Supplier Screening: We conducted a thorough market analysis to identify reliable suppliers with a proven track record in medical equipment. Streamlined Processes: Introduced a digital tracking system for real-time order monitoring, reducing lead times by 20%. Cost Negotiations: Negotiated long-term contracts with suppliers, achieving a 15% cost reduction on high-volume equipment. 💡 Results Efficiency Boost: 30% increase in procurement efficiency and reduced delays by 40%. Cost Savings: Saved over $250,000 annually in equipment costs. Compliance Improvement: Achieved 100% adherence to regulatory standards through updated supplier audits. Looking Forward In the evolving world of medical procurement, adaptability is key. I’m excited to continue optimizing processes and contributing to healthcare solutions that prioritize quality and efficiency. #Procurement #MedicalEquipment #SupplyChainManagement #VendorManagement #Healthcare

#Strategic #Procurement –📍#value,📍#partnership,📍#growth. Value-driven approach to Strategic Procurement and understanding it’s role in #Pharma and #Biotech’s context is a key issue for these companies 📈 growth. When emerging on the pharmaceutical and biotech market the companies that aspire to become #sustainable and #reliable #business competitor, usually have to deal with various resource constraints – from limited human resources to bounded capital. ➡️ This is where strategic procurement steps in. ➡️ As a 🔑 key aspect of conducting business procurement mandates a 🎯 strategic outlook that aligns with organizational objectives to streamline #purchasing across the #supply chain effectively. We all know that supplier-related 💵 expenses for critical processes like #research, #clinicaltrials, and #manufacturing can be substantial, often reaching hundreds of 💰 millions of dollars, but did you know that collaborative investments with suppliers can reach up to 6️⃣0️⃣% of total expenses over multiple years, thereby affecting financial statements and liquidity⁉️ ➡️ That is why it's pivotal to change the perception of procurement from mere 🎚cost reduction to ✨️ value-driven collaboration for biotech/pharma company sustained growth, long-term🥇success and regulatory compliance. ➡️ By recognizing procurement as a 🔑 key factor that fosters company’s 📈 growth, you can prioritize research and development goals and anticipate future requirements to align seamlessly with the company's overarching strategy. So how to effectively bolster organizational objectives and strategy of a business via strategic procurement❓️ ➡️ Companies must make an effort to 🎼🎶 harmonize the procurement operating framework with their business 🎯 strategy, taking into account sourcing decisions, purchasing activities and payment procedures, and implementing a 🤝 coordinated approach with stakeholders and suppliers. Such optimization of procurement processes helps companies to achieve critical 🕒 timelines and 💵 financial targets. ➡️ Implementing the ✨️value-driven approach instead of sole🎚 cost-saving perception to procurement and 🎛 harmonizing company’s strategy with procurement’s operational agenda enables stable 📈 progression of biotech and pharma companies. Within this context procurement need not necessitate substantial initial #investments but should be approached with 🎯 strategic planning to adapt processes, roles, and systems in tandem with organizational growth. 🫵 If you have more 💡 ideas on how to ↗️ scale up a biotech or pharma business with strategic procurement, I invite you to comment below and 🛜 share my publication for broader discussion. #vendormanagement #strategicpartnership #purchase

Here's my newest publication on #strategic #procurement in #biotech and #pharma #business. Enjoy!

So, what exactly is Procurement Doctors? Procurement Doctors is about transforming the procurement landscape. We diagnose issues within procurement processes, prescribe innovative solutions, and provide the treatment necessary to ensure a smooth, efficient, and effective supply chain. Our mission is to elevate procurement from a mere operational function to a strategic powerhouse and a value driver within organizations. Here's how we do it: Diagnosis: We begin by thoroughly understanding the current procurement processes and identifying pain points. Just like a doctor diagnoses a patient, we analyze the procurement health of an organization. Prescription: Based on our diagnosis, we develop tailored strategies to address specific issues. Whether it's streamlining supplier relationships, optimizing procurement workflows, or implementing cutting-edge technologies, we prescribe the right solutions. Treatment: We don't just stop at providing advice. We work alongside our clients to implement these solutions, ensuring they are executed effectively and deliver the desired results. Ongoing Care: Our relationship with our clients doesn't end with the implementation. We offer continuous support, monitoring the health of the procurement processes and making adjustments as needed to maintain peak performance. If you want to stay up-to-date with us, follow our Page.

Four key trends in the clinical trial supply chain https://lnkd.in/gQVd8SpF #warehousing #procurement #supplychain #logistics #logisticsmanagement #purchasing #strategicsourcing #supplychainmanagement #iipmr