Global pharmaceutical company

Challenge

When IESA took over stores and procurement management from a prior incumbent, it was challenged with achieving savings on cost of goods. Additionally, it was tasked with consolidating the client's supplier base.

Objectives

  • To utilise the existing supply chain and preferred vendor relationships, thus providing our client with reduced unit costs across multiple commodity groups.
  • IESA also aimed to widen the procurement scope offered by this outsourced agreement compared with the previous incumbent to enable the client to realise further savings across its portfolio.

Solution

IESA embedded a version of the MyMRO webpage directly onto the client's existing procurement platform. This webpage provided direct links to IESA preferred suppliers.

IESA agreed highly competitive rates with these nationwide suppliers ensuring that the best possible prices were provided directly to the client.

Additionally, MyMRO provided users with the ability to request additional services such as quotations and the ability to place orders with specialist suppliers when required.

Unlike other 'so called' Integrated Supply providers, IESA is not a distributor and therefore offers more attractive and user friendly pricing alternatives to the traditional cost + model. In this instance a zero mark-up with an associated management fee was agreed with the client. This transparency on cost of goods allowed for a totally open book policy and all savings were passed directly to the client.

Additionally, IESA is not limited to any particular commodity range of goods, allowing the client the choice of brands and best value.

Benefits

  • IESA declared savings of £300,000 in the first 12 months of trading. An audit undertaken by a third party on behalf of our client validated these savings, declaring an overall saving of 14%.
  • All of the above was achieved alongside a 40% reduction in employee costs.