Business Case for Change – Global Pharmaceutical

CRE / FM Service Levels Challenge:

A $20 billion pharmaceutical client sought to optimize its global corporate pharmaceutical sourcing approach at about 40 plants and facilities throughout North America (including Puerto Rico) and for the full range of administrative and operational services. The broad and complex scope incorporated 20 operating entities across three sectors (pharma, consumer packaged goods and professional services) and a diverse portfolio of facility types.

Full Sourcing & Outsourcing Strategy Solution:

The company engaged Trascent to lead the strategic sourcing initiative in North America. Our facilities management consulting team developed a segmented current performance profile for all types of locations – offices, laboratories, manufacturing plants, hybrid facilities, distribution centers and child care centers. Customer satisfaction levels were captured via a comprehensive survey for 15,000 building occupants developed and implemented by Trascent. New and enhanced metrics were identified and applied for:

• Administrative services: cafeteria, mail and security services,
• Operational services:  cleaning, building maintenance and operations, project services and utilities.

The Trascent team also developed and the led implementations of a full sourcing strategy and plan for outsourcing maintenance and operations.

Life Cycle RFQ Approach Results:

Collectively, the insights into current performance, the new metrics and the 25% return rate on the survey were critical for developing new service-level targets and a comprehensive approach. The company led the strategic outsourcing for building maintenance and operations activities. Our tailored “life cycle” approach was embedded in an enterprise wide Request for Quote (RFQ) developed specifically for this enterprise. The RFQ solicited “performance-based” proposals from the supplier base and involved a two-step process:

• Supplier screening (Request for Information) workshops: a total of 30 suppliers were filtered to a core of five qualified suppliers
• Supplier sourcing strategy: Finding identifying the most cost-effective supplier of goods services for your  the business or enterprise needs.

The bottom line, this pharmaceutical has established the right supplier base to meet the needs of its diverse North American operations.