Challenge

A sourcing initiative was conducted by the procurement team, leading to the selection of preferred suppliers and the phasing out a major incumbent supplier

Pricing agreement was based on lenses, which represent part of the total ophthalmic spend

Decision was made with no consultation of clinical key stakeholders, leading to low compliance to sourcing decision

In the meantime, as a retaliation, the incumbent supplier substantially increased pricing

Curzon's approach

  • Created full spend transparency on Ophthalmic Spends
  • Sourcing decision was based on 30% of the total spend only
  • Applied TCO analysis
  • Identified risks as un-addressed part of the spend led to major price increase, wiping out all benefits of the sourcing initiative
  • Defined requirements and specifications on 100% spend
  • Conducted additional negotiations with selected suppliers
  • Identified and implemented further savings opportunities through pack harmonisation

Impact

  • Sped-up implementation and increased Clinical compliance
  • Eliminated negative commercial impact and achieved multi £m additional savings
  • Achieved operational efficiencies through pack standardisation

Contact our Procurement service line lead,Stephane Boroncelli, to find out more

Contact us

related articles