Background:

Following ADR's successful implementation of a global purchasing improvement program for its New Jersey-based parent company, American Home Products (AHP), ADR was asked by the Director of Purchasing for Wyeth Europe (the European pharmaceutical subsidiary of AHP) to develop a robust purchasing process to support the development of a wider approach to sourcing.

Aims:

ADR's aim was to directly support a program of change within Wyeth that would ensure a pan-European approach to its purchasing and deliver real corporate value.

Project:

The assignment took place during significant restructuring within the company including the rationalization of manufacturing locations, and the re-allocation and re-distribution of production.

ADR supported the recruitment and training for Wyeth's purchasing team developing a framework of capability planning and identification of appropriate business skills. ADR ensured that all staff had clearly defined responsibilities, authorities and accountabilities which accurately reflected Wyeth's current business needs and goals.

To increase Wyeth's sourcing effectiveness, ADR tailored each commodity approach to the characteristics of the specific environment and business need.

Results:

Due to ADR's involvement, Wyeth gained a purchasing function with a truly regional focus and a much wider commodity remit which made an effective and sustainable contribution to global collaboration.

"Prior to ADR's involvement European purchasing within Wyeth was undertaken on a local basis with purchasing at our various national manufacturing locations being heavily involved in transactional activity, predominantly in inventory and direct manufacturing goods. The prime focus of attention was on reducing unit prices and few suppliers were being managed proactively to deliver additional value to our business.

"ADR's support included the identification of opportunities for pan-European collaboration, and the design and facilitation of a process to support such activity. ADR's more hands-on support also extended across a range of purchasing activities including the preparation of negotiation plans and multi-national sourcing strategies."

Reproduced with the kind permission of the Director of Purchasing, Wyeth Europe