Global Pharmaceutical Services Provider Saves $800,000 on MRO Spend with Procure Analytics

Member Profile

The member is a global provider of pharmaceutical services with annual revenue of approximately $1.5 billion and over 2,500 employees. They have a strong presence in the healthcare and pharmaceutical manufacturing industries, offering a wide range of services to support drug development and manufacturing.

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Procurement Spend Challenges

The member company was in period of growth and expansion, with large investments in its US manufacturing facilities as well as new construction projects in Europe. The need to drive cost savings on its MRO spend was a high priority.

They had a long-established, highly-mature procurement team and had just onboarded a new executive procurement leader. This executive had been a PA member at a previous company, and understood the value PA could bring to their company’s MRO spend management.

The new procurement leader reconnected with PA, and the team immediately got to work.

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GPO+ Approach for MRO Spend Management

The engagement started with a benchmarking analysis of the member’s MRO spend across the company’s eight North American manufacturing plants (six based in the US, two in Canada).

Opportunities to optimize SKUs were identified, and the benchmarking analysis showed almost $1 million in savings by consolidating the member’s spend to PA’s Fastenal contracts in the US and Canada. The transition and implementation took four months to complete, during which the PA Implementation team helped Fastenal’s FASTBin electronic inventory solution.

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Results

PA’s GPO program delivered $800,000 in savings on $4 million in MRO spend. The member company successfully transitioned to a vendor managed inventory system, optimizing their procurement and supply chain functions.

PA and the member are currently exploring additional partnership opportunities, including managed procurement services through our tail spend business, Amicus Spend Management, and PA’s GPO program for packaging supplies.