- Pharmaceutical

CLIENT PROFILE

Type: Lab / R&D - International Life Sciences Company

Employees: Over 92,000 worldwide.

Geographic: Sites in North America and Europe

Other: Financial Times 500 Top Companies

FINANCIAL PROFILE

Total Maintenance Contract Spend: $2,347,521 (Initial Phase)

Hard Dollar Cost Savings (verified by reviewing current maintenance contracts): $516,455 / 22% (for 2 sites)

Projected Invoices to be Processed by SU: 3,786 (vendor invoices sent to SU for review and payment)

Administrative Savings: $378,600 (internal cost in excess of $100 to process invoice and remit payment)

THE ISSUE

The client recognized the increasingly high cost of repairing their equipment through Maintenance Contracts and Time & Material. The spend was broken down by the cost of T&M expense, M/C costs and the administration involved in maintaining them. This client also felt that they were not benefiting as a global company in respect to multiple locations with same vendor. In addition there was a disconnect between the client's different sites and internal departments in sharing best practices. Due to the size of this operation information was not being communicated or reported to management. The client concluded that there was an opportunity to reduce global spend while improving management of their equipment and contacted Specialty Underwriters LLC.

THE SOLUTION

The initial step was to understand the issue and long term goal of the client. This was achieved by performing a "Financial Analysis" which provided insight into where the maintenance dollars were going. The analysis also provided data necessary to rollout a detailed and efficient implementation plan. After the plan was approved by Finance and Procurement Management the Department Managers were brought in to support and strengthen the initiative. The program solution was "TELESERVE™" and the results were:

ü   Reduction of administrative burden, one purchase order to one supplier.
ü   Quarterly invoicing, reduction of A/P transactions. (invoice reduction)
ü   Improved communication through single point of contact. (Commodity Mgmt.)
ü   Aggressive total cost savings.
ü   Inventory control of equipment assets through tagging. (Asset Mgmt.)
ü   Extensive reporting capability tracking costs, repair history and
      equipment performance.

 

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