Challenge
A sourcing initiative was conducted by the procurement team, leading to the selection of preferred suppliers and the phasing out a major incumbent supplier
Pricing agreement was based on lenses, which represent part of the total ophthalmic spend
Decision was made with no consultation of clinical key stakeholders, leading to low compliance to sourcing decision
In the meantime, as a retaliation, the incumbent supplier substantially increased pricing
Curzon's approach
- Created full spend transparency on Ophthalmic Spends
- Sourcing decision was based on 30% of the total spend only
- Applied TCO analysis
- Identified risks as un-addressed part of the spend led to major price increase, wiping out all benefits of the sourcing initiative
- Defined requirements and specifications on 100% spend
- Conducted additional negotiations with selected suppliers
- Identified and implemented further savings opportunities through pack harmonisation
Impact
- Sped-up implementation and increased Clinical compliance
- Eliminated negative commercial impact and achieved multi £m additional savings
- Achieved operational efficiencies through pack standardisation
