How we centralised a customer's supply chain to save on costs | Pontoon

How we centralised a customer’s supply chain to save on costs

Summary

A case of uncontrolled spend

Our customer, a French life sciences company, needed to identify uncontrolled rogue spend. To improve visibility and regain control, the Pontoon team designed a multi-pronged approach that would bring together tech, data clarity, supplier management and subject matter expertise.

Challenge

Aligning governance with supplier management

We needed to get the customer’s SOW spend under control. The original decentralised supplier network made it challenging to comply with local regulations and meant limited visibility across the programme.

Details

How we helped

We examined their current supply chain and centralised management of labour under Fieldglass VMS adding Power BI for analytics to improve visibility into SOW spend.

SOW audit:  Through an audit of the existing statement of work, the team discovered inconsistencies in the structure of the agreements and across the supplier network.

Governance: We deployed a team of 10 purchasing consultants who closely adhered to KPIs and SLAs.

Supplier Management: We renegotiated terms with key suppliers which delivered significant cost savings and achieved 100% compliance.

Impact

Increased supplier visibility decreased risk and reduced costs

Process improvement leads to cost savings.

10M€ savings by increasing visibility into customer R&D invoicing and enabling an annual review of SOW purchasing strategy.

Within the first 12 months, we identified 200,000 €+ of rogue spend, which created 7% annual recurring cost savings. Since then, we also:

  • Achieved 100% supplier compliance
  • Brought SOW best practices to additional business units
  • Controlled costs
  • Created more transparency within the programme

 

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