In 2000 ADR were selected by Tiger Brands to pilot a procurement improvement project in the group’s Healthcare division as proof of concept before rolling out the project to the other divisions in the group – food, animal feeds and milling.
Adcock Ingram, who were then a division of Tiger Brands, are one of the country’s largest pharmaceutical manufacturers with an extensive range of both proprietary and licensed products for the consumer and ethical market sectors.
Procurement in Adcock was decentralised at each of the 3 manufacturing operations. Head office was staffed with 1 Procurement Manager tasked to co-ordinate procurement activities across the group, leverage on synergies and drive collaboration activities.
This approach was unstructured, accountability for procurement improvements were not defined, focus was administrative and collaboration activities met with little success.
Current State Analysis Skills and Process Development workshops Category Management Cost Measurement and detailed reporting
To improve procurement performance in the healthcare division, assess the benefits and determine the merits of rolling out a procurement change programme across the broader Group.
Robust procurement processes were implemented in the business. Cost improvements targets to be delivered over 2 years were attained within 18 months. Collaboration processes were strengthened and stakeholders supported procurement led improvement projects. Common ways of working in procurement across the business ensured volumes and buying power were leveraged. Operations retained the day to day control of the buying activities but actively supported sourcing projects and provided technical and specialist support to the sourcing teams.