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.
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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.