A Pharmaceutical Corporation Saved 34% on MRO Supply Chain with Amicus

Member Profile

A Pharmaceutical Corporation is a global leader in diagnostics, medical devices, nutrition, and branded generic pharmaceuticals, dedicated to improving health outcomes worldwide. For more than 135 years, the company has leveraged science and innovation to create breakthrough products that empower individuals and communities to lead healthier lives.

With a presence in over 160 countries and a workforce of 114,000 employees, the company remains committed to developing solutions that enhance wellness, from infant nutrition to diabetes management.

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The Challenge

As part of its commitment to year-over-year savings, Amicus partnered with the customer to implement a PPE material standardization program across five large manufacturing sites. Previously, the company had negotiated contracts with multiple large distributors, leading to a fragmented category with inconsistencies in product selection and service levels. To drive efficiency and cost savings, a streamlined, optimized approach was needed.

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How Amicus Helped

Although Amicus had already secured best-in-class pricing on the specific PPE items each site had been purchasing, we worked with all locations to gain agreement on fully optimizing the category.

Leveraging nearly two years of procurement data, our Category Managers compiled a detailed list of PPE requirements from each site, identifying manufacturer names and part numbers. We then collaborated with the customer’s preferred PPE supplier, ensuring their field representatives visited each site to assess additional needs, including point-of-use solutions, consignment options, and optimal stocking levels based on usage patterns.

Simultaneously, Amicus worked with the supplier to cross-reference each PPE item in use, identifying high-quality alternatives that offered cost savings without compromising fit, form, or function. Samples were provided for site evaluations, and approvals were secured once suitable replacements were identified.

Once the product selection process was complete, we negotiated optimized pricing with the supplier based on the customer’s usage and service requirements. To ensure a smooth transition, Amicus and the supplier held joint meetings with each site, presenting customized solutions tailored to their specific needs.

With site approvals in place, Amicus and the supplier implemented a “Launch Readiness” document outlining service level agreements, stocking requirements, and performance measurement criteria—ensuring ongoing success and continuous improvement for the program.

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Results

Amicus delivered a 34% net savings, equating to $200,000 in annual savings across 300 items. By consolidating all PPE spend into one optimized solution, we were able to increase service levels from the supplier, ensuring improved efficiency and consistency across all sites.