Primary Packaging
Increased efficiency and reduced costs by restructuring the procurement of the glass bottles product group.
Starting Point
In a challenging situation, the foreign subsidiary of a supplier purchased glass bottles identical to those of its German counterparts, but at a price that was only half of the local price – and from the same manufacturer.
Objective
Our goal was to bring the procurement price to a competitive level equal to or even below that in Germany. This was to be achieved either through price negotiations with the current supplier or by identifying and evaluating alternative suppliers with more cost-effective offers.
Approach
- A thorough analysis and review of the price difference was carried out in order to understand and address the underlying causes.
- Intensive discussions were held with the existing suppliers to determine the reasons for the significant price differences and to find solutions.
- A total of 5 different alternative suppliers manufacturing identical products were presented.
- Direct talks with the manufacturer were initiated in order to establish a direct supply agreement and bypass expensive intermediaries.
- Several rounds of negotiations were conducted together with the pharmaceutical company in order to achieve the best procurement terms.
Result
Through the successful negotiations and the strategic switch to direct shipping, our member was able to achieve substantial annual savings in the six figures. These successes demonstrate our ability to develop and implement effective solutions for complex procurement challenges.