Single Use Technologies (SUT) Assembly Tender Success

Single Use Technologies (SUT) Assembly Tender Success

Partnering with a global, biotechnology organisation on a further price compression following a successful eRFX for SUT, delivering 17-28% reduction in costs through eSourcing.

To discuss how we can help you with similar challenges please contact Will Sillar.

The Problem

  • Single Use Technologies (SUTs) for one of the company’s facilities were historically single sourced, however, the relationship had been strained due to supply and delivery issues.
  • The procurement team enlisted 4C’s help to execute an RFP with three qualified vendors and e-Auction for the remaining 2022 volume of 100 batches to target price reductions.

The Solution

  • Following a discussion on background and objectives for the SUT Assembly Supply sourcing, the planning for tender event included setting qualitative questions around the criteria of quality, innovation and delivery, together with a pricing and lead time quote request for overall evaluation and a long-term supply agreement mark-up exercise.
  • The RFP process lasted just over two weeks, but since pricing was close, the tender was moved to a second-round auction. Within less than two months, a full RFP and Auction round was mobilised and concluded.

The Impact

  • Early integration of two suppliers in 2021 together with the final tender process to select partners for Q2-Q4 2022, led to further pricing reduction by 17% ($6.3M) while also minimising risk via dual supply.
  • An additional opportunity to increase the savings to 28% by offering alternative % supplier choice allocation was identified to drive further efficiencies.
Related Services & Industries