How we centralised a supplier network to eliminate €200,000 of rogue SOW spend

How we centralised a supplier network to eliminate €200,000 of rogue SOW spend


Strategic Statement of Work procurement solutions for rogue spend control

In response to the challenges faced by our client, a prominent French life sciences company, we initiated a comprehensive strategy to address uncontrolled rogue spend. By blending technology, data, supplier management best practices, and subject matter expertise, Pontoon enhanced visibility and regained control over the client’s financial landscape, identifying over €200,000 of rogue spend and ensuring 7% annual cost savings.

The challenge

Optimised supplier management solutions for SOW cost control

The primary challenge involved aligning governance with supplier management to regain control over the customer’s Statement of Work (SOW) spend. The client’s decentralised supplier network posed difficulties in adhering to local regulations and hindered overall visibility across the programme.

How we helped

Centralising the supply chain for efficiency

To streamline supply chain management, Pontoon examined the existing setup, implementing the centralisation of labour management under a Vendor Management System (VMS). The integration of Power BI for analytics significantly improved visibility into SOW spend, facilitating informed decision-making.

Conducting a thorough SOW audit uncovered inconsistencies in the structure of existing agreements and across the supplier network. To address this, we deployed a dedicated team of 10 purchasing consultants, meticulously adhering to predefined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). Furthermore, our team engaged in comprehensive supplier management, renegotiating terms with key suppliers.


Strategic procurement for substantial savings

Pontoon’s strategic procurement process improvements contributed to €10M in savings by providing improved visibility into customer R&D invoicing and enabling an annual review of SOW purchasing strategy.

Within the initial 12 months, we identified over €200,000 of rogue spend, generating a 7% annual recurring cost savings. Moreover, these efforts facilitated 100% supplier compliance.

Pontoon successfully extended SOW best practices to additional business units, demonstrating effective cost-control measures, and enhancing transparency within the programme.

Related Case Study
Services Procurement