CASE STUDY : Anklesaria worked with a global pharmaceutical company to improve their supply of core vaccine inputs, reduce costs and develop key insights for similar categories.
A global pharmaceutical company involved in vaccine production was working with a constrained and near-monopolistic supply relationship. The core inputs for vaccine production was at one of two key global manufacturing sites. The manufacturing plant in question was not achieving the required ROI and was a candidate for divestment. That was where Anklesaria came into the picture.
We worked closely with the client and their internal procurement team members to understand key drivers of value creation for the supplier and customer. We then developed a detailed process-based cost model to understand cost drivers and sources of value creation for raw materials and inputs, processing and delivery of vaccine as a precursor to the customer facility. We also helped in the development of a clear and effective negotiation strategy. In addition to working with the internal team throughout several days of negotiation with each supplier.
Our efforts resulted in a 21% price reduction during negotiations. We also identified an additional 35% in yield losses that the client was not aware of until then. This led to the client setting up a LEAN improvement team to remove such bottlenecks.
Using our findings, the client also stopped subsidizing other supplier revenue streams, while the supplier benefited from the removal of these bottlenecks. Their internal team used the learnings and templates to deliver cost insights for various other categories and contracts. In the long run, our work also led to increased pandemic preparedness and allocations.
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