Growth – through acquisitions or product launches – places significant stress on suppliers, operations, finance and commercial teams. Having the right suppliers in terms of capability, capacity and performance is critical to support growth.
At Adventus, we help companies gain insight through supplier due diligence to ensure supply base capability, cost structure, and risk profile are aligned with business goals.
In anticipation of growth, consider important supply questions such as:
Streamline procurement processes for emerging companies and merger integration.
Define the key processes, systems, and governance structures needed for seamless procurement integration during mergers or acquisitions.
Assess procure-to-pay (P2P) processes to streamline workflows, enhance compliance, and improve operational efficiency.
Analysis of supplier data – spend, contractual and performance – with an understanding of the market profile serves as the foundation for supplier consolidation and alignment. Good supplier analysis provides important information for supply category planning and prioritization. Sourcing and operations teams can use category plans to develop a roadmap and the timeline needed to manage supplier transition and negotiate agreements. Internally, the consolidation of supplier data files to one supplier master file improves cost, payment, risk and supplier management.
Executed sourcing and category management strategy to drive annual savings across logistics, MRO and service categories and meet synergy savings goal. Engaged executive leadership, procurement, finance, legal and payable teams to deploy category management and monthly review executive review sessions.
Working with operations, finance and sourcing leadership team for global medical diagnostic client, analyzed and verified souring savings opportunity for direct and indirect categories impacting both Cost of Goods Sold (COGS) and Sales, General and Administrative (SG&A) expenses.
Working with finance and sales due diligence team members provided operational assessment for proposed acquisition of Class 1 medical device company. Target company performed light assembly and distribution across US market. Operational due diligence provided insight on operational efficiencies impacting raw material purchases, inventory, excess and obsolescence, scrap, labor efficiency and distribution performance. Input provided buyer with operational adjustments to gross margin, EBITDA and company valuation.
With growing bipartisan support and after debate in both the US House and Senate, Life Science companies recognize the BIOSECURE Act has strong support to pass. If enacted, it will prohibit US Federal Agencies and companies receiving federal funding to work with select Chinese Life Science companies.
By leveraging digital tools for supplier onboarding, collaboration and payment, CFOs can improve financial visibility, identify cost-saving opportunities and make informed decisions to optimize financial performance in the rapidly evolving life sciences landscape.
Improving the odds of selecting the right CDMO for your organization requires an evaluation of market analysis, manufacturing and quality assessment, financial discussion, and several other key factors. Both the sponsor and the CDMO need to know they can build strong relationships with people to address complex issues while meeting tight deadlines.
The truth supply chain managers must face is that although the COVID pandemic was unprecedented, the disruptions it caused are not. The pandemic merely exposed supply chain weaknesses that were already there.
How a company structures its procurement and sourcing function will dictate how well it can work with suppliers to meet demanding customer and regulatory requirements.
As an emerging company, does your team have the framework and experience to manage suppliers during major disruptions?