Amino Acids

Biotech saves >40% in 1 month

One large biotech company was new to strategic sourcing. The company’s main focus had been technology and delivering the product to its customers.

A really quick win project was amino acids. An analysis of all amino acid spend, the current supply chain and the amino acid market was performed. Requests for quotations were sent out to all the main players, including companies in China.

By negotiating with complete market knowledge prices were cut by 40%. The supplier was highly enthusiastic about the process and became the first strategic supplier offering the company preferential and exclusive access to many of the new products and technologies it was developing.

The company benefited immediately from large savings, spend was consolidated as fewer suppliers resulted in less paperwork, and the specifications were unified to EP grade. The company has since benefited from annual continuous improvement projects with the supplier.

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