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Strategic R&D Suppliers to Large Chemical Company
Problem After years of cut-throat bargaining with R&D providers, the company had lost market share, was consistently late to market, and supplier quality had diminished. Suppliers had dwindled in number over the last decade by win-lose negotiations and tactical transactional processes. Solution First, the company shifted from a transactional procurement perspective to a strategic relationship. Then, using our best practice frameworks, key solution provider contracts were renegotiated, with a focus on creating strategic competitive advantage for the company, and win-win value creation for both parties. Finally, innovation become a core element to the ongoing success of the solution providers. Results Total Cost of Ownership dropped dramatically, solution providers dramatically improved time-to-market and implemented new process and technology innovations. The corporation’s market share began to grow, company profitability improved by tens of millions of dollars directly attributed to the program, and the solution provider’s financial footings stabilized to enable critical strategic investments.
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