Medical Supplies manufacturer saves 20% through 4 month programme of Procurement Cost Reduction
Medical Supplies manufacturer saves 20% through 4 month programme of Procurement Cost Reduction
The Client
Procura’s client is a UK medical supplies company, developing and manufacturing a range of products with a focus on reducing risk and enhancing patient dignity.
As a private equity owned business since 2015, there was a focus to drive EBITDA improvement from cost improvements in both direct and indirect spend categories. Procura were engaged to deliver those savings and boost EBIT.
The Approach
The scope of this project was primarily on the IH Woundcare division and started with a an initial Spend Analysis and Opportunity Assessment. This identified and planned the 4 month programme of work to deliver savings.
Sourcing activity focused on raw materials, finished goods and packaging, with strategies including renegotiations with suppliers and consolidation.
The Results
- Maintained and improved supplier service levels and product specifications whilst delivering cost improvements
- Introduced new pricing mechanism that will enable the client to make informed decisions around future raw materials purchases
- Introduction of new standardised contract and service level documentation for future use
- Implemented a new process for receiving finished products whilst delivering operational efficiencies and cost improvements
- 20% saving in Packaging.
Prosource
ProSource removes the hassle of managing multiple suppliers and allows companies to harness the power of collective buying to leverage best value and ultimately reduce costs and increase profit. Click for more...
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