CASE STUDY:
PROCUREMENT OPTIMISATION AND CATEGORY COST-SAVING
01 | The starting point
Our client:
pharmaceutical industry
operating in the
contract development and manufacturing (CDMO)
specialising in
Before our intervention, they were facing:
Procurement inefficiencies, including a lack of commercial control, which overall lead to resources not being used to their best potential.
High operational costs in transport & logistics as well as in equipment & consumables.
Ineffective inventory management, leading to excess stock and tied-up capital.
The main goal: Optimise procurement, reduce costs, and improve transparency across various categories – all while maintaining quality standards and regulatory compliance.
02 | Impact of the problem
These significant challenges mainly lead to the following consequences and impact on our client's business:
Excessive spending in procurement
Limited competition among suppliers and inefficiencies in negotiations resulted in high costs in procurement.
Compliance risks
Having no centralised system for tracking contractual agreements led to a lack of transparency, which ultimately caused compliance risks.
Requirement of additional funds
Inefficient inventory management, in particular excess stock and poor categorisation, created increased working capital requirements for day-to-day operations.
Lack of efficiency in supply chain operations + overall spend visibility
As there was no clear tracking of how much money was spent throughout the supply chain, managing costs and optimising operations effectively was a challenge.
Higher operational costs + reduced profitability
Regulatory risks
due to non-compliant supplier contracts.
03 | Our solution as THE FORCE
THE FORCE tailored solutions for each challenge using a structured data-driven strategy:
1. Global transport & logistics tender:
- Ran a competitive bidding process with 5 suppliers.
- Used historical shipment data to negotiate better rates.
- Achieved 30% cost savings while securing service compliance.
2. Equipment & consumables optimisation:
- Conducted global tenders with key suppliers.
- Standardised pricing agreements to reduce cost fluctuations.
- Identified 10% savings potential in supplier contracts.
3. Contractual landscape transformation:
- Mapped contractual gaps and compliance risks.
- Defined a framework for supplier reduction and selection.
4. Inventory management roadmap:
- Introducing regular demand-supply reviews for proactive stock control.
- Implementing supplier consignment stock models to free up capital.
- Targeting inventory reduction through category-specific initiatives.
Implementation steps
Data analysis to uncover inefficiencies
Professional RFQs (Request for Quotations) to drive competition
Process standardisation to enhance procurement efficiency
Stakeholder engagement & knowledge transfer to ensure sustainability
04 | Reults
+ €500k
in annualised cost savings across transport & logistics and equipment & consumables.
30%
cost reduction in transport & logistics with optimised shipment routes
10%
savings on equipment & consumables via competitive RFQs
10%
planned inventory reduction, minimising working capital requirements
Qualitative feedback:
The client acknowledged THE FORCE’s ability to drive tangible savings quickly and appreciated the long-term strategic procurement improvements. The collaboration also strengthened relationships between Procurement and other functions.
05 | Next steps
- Expand supplier governance frameworks to other procurement categories.
- Implement automated procurement tracking for real-time spend control.
- Further optimise logistics routes to reduce lead times.
06 | Strategies for continued success
Opportunities for ongoing improvement:
Translating strategic intent into scalable execution:
Bridge strategy and implementation in high-growth environments to strengthen long-term partnerships and to drive sustainable revenue growth.
Targeted spend optimisation in strategic procurement areas:
Identify and assess high-impact spend categories. This way, additional savings can be unlocked and further support the client’s financial targets.
Enhancing operational efficiency across supply chain processes:
Streamline critical workflows including inventory management, purchase requisition to order conversion, and master data accuracy – to eliminate bottlenecks and enable scalable performance.
Continued partnership:
The client and THE FORCE are exploring long-term collaboration opportunities to maintain cost discipline and supply chain efficiency while supporting the client’s growth strategy.
