Case Studies

Streamlining Chemical Sourcing for a Leading Life Sciences Partner

November 09, 2023•by YCP Supply Chain

Client

Our client is a trusted research and development (R&D) and manufacturing partner, specifically in the global life sciences industry

Scope

Aiming to source more than fifty common chemicals, primarily in low volumes, the client sought to implement the following:

  • Reduce the supplier base and overall costs

  • Increase supply chain efficiency and transparency

  • Improve shipping and delivery rationalization

Approach

  • In-depth data analysis of previous invoices and data collection for over 50 SKUs

  • Identification of new vendors based on pre-defined qualification criteria

  • Execution of a comprehensive RFI process to gather supplier information

  • Screening of supplier qualification based on RFI responses and collection and testing of supplier samples in accordance with the client’s testing criteria

  • Review current inventory management processes

  • Analysis of historical demand data to identify trends in chemical consumption

Results

  • Achieved 11% reduction in costs via contract negotiations, bulk purchasing, and inventory management

  • Successfully reduced supplier base from fifteen to four vendors, improving supplier accountability, consistency, and quality

  • Reduced delivery delays and overlap by ~76%, benefitting manufacturing throughput and warehousing costs