Global Pharmaceutical Organisation

Problem Statement

$50mn USD of spend with IT Professional Services providers
Lack of Procurement engagement for IT Professional Services activity
Decentralised processes with responsibility in the Business Units
In-year cost reduction and budget targets
Suppliers selected based on legacy, relationships and lack of knowledge of alternatives
Lack of understanding of Procurement processes

CoCo Program of Work

Full analysis of spend data and formulation of strategy
Implementation of new global Preferred Supplier List (PSL) for IT Professional Services spend
Negotiation and execution of revised framework agreement with more than 20 providers
Non-preferred suppliers exited
Supplier reporting implemented
Implementation of IT Professional Services management platform
Management of business engagement and guidance through change of PSL and management platform

Outcomes

$1.1mn USD of in-year savings delivered with a pipeline of $3.8mn USD for future years
$0.5mn USD of cost avoidance
Delivery of new PSL with spend rebates and exit of non-preferred suppliers
Configured and implemented IT PS management platform and new frameworks using Business Change methodology - across more than 70 business units