Prior to its merger with Glaxo, SmithKline Beecham was one of the world’s largest pharmaceutical and healthcare companies. With 50,000 employees, 300 products and laboratory services in 130 countries, SB had sales of over £5 billion. The cost of purchases was over £3 billion which represented 55% of sales revenue. Invited to assess its purchasing effectiveness, ADR found that SB’s production purchasing operations were, in the main, focused on supply and that control of non-production expenditure was dispersed throughout the organisation.
To develop a worldwide initiative that would improve Glaxo's purchasing performance, transforming it from an undervalued business into a business strength
ADR worked in partnership with Glaxo to design and deliver an extensive worldwide development initiative to improve purchasing performance across the complete production and non-production services portfolio.
Savings of £75m in the first 18 months led to a doubling of the savings target from 100m to 200m over three years (this impact on the bottom line equated to an annual increase in sales of 290m)
Collaboration was strengthened, cross- functional teamwork established; and structured action planning led to real improvements, in both individual and business purchasing performance. In recognition of excellence of it development work ADR won the prestigious UK National Training Award.
‘Making purchasing a strength of business calls for an unwavering commitment to leadership, communication and training. We must all become champions of individual and team development. By working with ADR in a very open, collaborative way, we have developed a state-of-the-art development initiative.’
Senior Vice President & Group Purchasing Director, SmithKline Beecham
Designed and deliver worldwide training initiatives
Asses their purchasing effectiveness
Savings of £75m in the first 18 months £100m to £200m saved over a three year period