Case Study: an outsourced drug compounder cuts spend 10% with L.E.K. Consulting procurement optimization

a outsourced drug compounder cuts addressable spend by 10% with LEK Consulting

an outsourced drug compounder was struggling to remain cost competitive in a price-sensitive market. The company engaged LEK Consulting to scrutinize its spend profile and identify actions to establish a more competitive cost position, despite a limited history of systematic spend reviews.

LEK Consulting built a systemic view of the company's spend to identify cost-saving levers. This included evaluating group purchasing organizations for ingredients, analyzing the supplier mix to increase security, and assessing spending on packaging and freight. The resulting strategies reduced the client's addressable spend by 10%, including a 5% cost reduction in pharmaceutical molecules and 15%-20% reductions in packaging.