Delivering Market Intelligence for a global pharmaceutical company

Posted on May 21st, 2014 by

Photo of pills manufactured by a global pharmaceutical company

Assignment Profile

Creating an effective Market Intelligence function within the Center of Excellence (CoE) of a $16bn global bio-pharmaceutical company

Business Challenges

The company’s 250 -strong global procurement team’s  ongoing primary objective is the creation and delivery of their Strategic Category Plans to achieve aggressive savings targets and supply chain rationalisation. However, rather than focusing on strategy and options, massive gaps in the understanding of key aspects of their markets, such as competitiveness, cost modelling, supplier strengths and risk analysis, meant that their time was continually being pulled into detailed research and analysis.

In addition, with Ariba being implemented globally, it was vital to standardise on a suite of tools and techniques to support the creation of the Strategic Category Plans within the S2P platform.

With in-year savings targets and Ariba implementation early in Q2, it became necessary to accelerate activity across a number of workstreams to ensure the program’s effectiveness.

What we did

Working alongside Procurements’ Center of Excellence, SpringTide, within just three months, developed a powerful Market Intelligence toolkit that integrated into both Ariba and the Category Planning process. Practicality was further achieved by breaking MI out into Four Pillars: Spend Intelligence; Supplier Intelligence; Market Intelligence and Price & Cost Intelligence, each Pillar being supported by detailed tools, models and comprehensive online guides to ensure principles were easily understood.

A new Market Intelligence team was created within CoE comprising employees and support from SpringTide, and already dozens of requests have been processed against aggressive timelines and covering a wide range of research and analysis.

Pills being manufactured by a Pharmaceutical Company

Global training was carried out to all members of the procurement team and backed up by an on-site and remote support program. To ensure maximum value was obtained from market research, the new process was supported by a knowledge repository and Intranet site with the guides and tools being integrated into S2P platform

The new function means that MI requests are understood, tightly scoped and researched within an extremely short time frame, with focused responses provided back to the originator. The process maximising available resources and reducing duplication.

Business Impact

The client has seen a number of benefits from the work delivered to date:

  • Introduction of new suppliers not previously considered
  • Deeper awareness of cost models, supplier strengths and sources of competitive advantage
  • Accelerated procurement projects
  • Insights to challenge the supply chain from a logical and informed view
  • Heightened awareness of the market and positioning within it

Whilst the financial ROI has yet to be established, initial indicators show decision-making timelines compressed; supply chains optimised; and risk-levels reduced

A final word from the client

“SpringTide have been engaged across a number of work-streams. The speed and agility of their response is impressive, plus the flexibility in meeting what can be rapidly-changing needs.

They bring a refreshing, down-to-earth approach complemented with a depth of expertise. The deliverables are precise and match our exacting requirements.”

Vice President, Procurement CoE

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