Supply Chain Improvement


Procurement Strategy and Redesigning of Suppliers Network

Through international experience, the professionals at Sanigest have learned that significant savings can be achieved through improving the supply chain, and the most important tools involved in this endeavor are contract renegotiation and process redesign. Sanigest offers professional services for determining procurement strategies and redesigning suppliers’ networks. The firm has discovered various measures for achieving cost savings, which range from reducing the number of different items in inventory, to negotiating large-scale service contracts, or standardizing the processes of ordering, delivery, and accounts payable.

To improve the manageability of supply chains, Sanigest helps our clients to:

  • Focus on the external supply chain
  • Recognize and leverage the impact of supply chain performance on improving financial performance
  • Use time as a critical measure of performance to shorten the supply chain
  • Divest non-core supply chain assets, functions, and processes to specialist third party providers
  • Exploit Internet technology to manage complexity and uncertainty across the extended supply chain in real time
  • Create a green supply chain, which is the trend to enforce compliance with labor, environmental, social, and economic standards is gaining momentum

Appropriate information technology can also produce significant savings in the area of supply chain management. Sourcing, purchasing/procurement, distribution management, logistics, and payment are all dependent on information technology. Cost savings and the improvement of process efficiencies can be achieved through implementation of information technology in each of these areas (tools such as online catalogues and ordering).

The next examples demonstrate how Sanigest has made use of its proven approach in developing procurement strategies and redesigning suppliers’ networks on behalf of our clients:

  • For instance in the Dominican Republic, Sanigest was contracted to sketch a functional and organizational design of a modern health services purchasing unit for the Dominican Republic government. This involved the presentation and discussion of alternative models of purchasing units and provider payment systems.
  • In addition, in Costa Rica, Sanigest’s overall objective entailed executing a country-based assessment of the pharmaceutical system’s vulnerability to corruption and identifying the specific corrupt practices impacting the system’s performance efficiency. As part of the assessment efforts, the Sanigest team provided an overview of the local pharmaceutical system from procurement to use; managed the application of the pharmaceutical transparency methodology to assess the risk for corruption, resulting waste, and reduced ability to provide safe and effective medications; and utilized the analytical framework to analyze the threats and outcomes of drug registration, selection, procurement, and distribution.