Case Study

Large pharmaceutical major improves supply-chain risk management through better analytics and process redesign

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A large pharmaceutical major wanted to unify its approach to governance, risk, compliance, and performance management of global suppliers


Business challenges

  • High number of supplier locations globally
  • Limited visibility on supplier stability and reputation
  • Lack of a periodic review system

Genpact solution

  • Designed and implemented a process for evaluating “periodic” suppliers that account for US$9 billion in annual spend
  • Used analytics to systematize scoring of suppliers’ fiscal strength and “criticality” (i.e., company’s need for a supplier vs. supplier’s likely availability when needed)
  • Established robust reporting and review mechanisms by creating quarterly dashboards

Business impact delivered

  • Increased macro- and micro-visibility into supplier base
  • Improved corporate governance, performance, and risk management
  • Enhanced ability to defend price increases, negotiate better contracts and payment terms, and identify additional savings opportunities

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