CASE STUDY
Allergan Australia
From September to November 2013 Allergan Australia engaged Jamecam Consulting to facilitate a commercial review of its procurement practices and supply chains for a number of its key categories of marketing expenditure:
- Graphic design, digital and creative agencies
- Print procurement and management
- Marketing logistics – warehousing and distribution
- Marketing conferences and events production
The following Allergan business units were in-scope for this project:
- Medical aesthetics
- Eyecare
- Neurosciences
Project phases were defined in collaboration with Allergan business units:
- Review of existing vendor service agreements
- Analysis of historic spend data
- Review of current supply chain models and processes
- Critique / benchmarking of current vendors, service agreements and supply chains
- Identification and quantification of opportunities for costs savings and efficiencies
- Suggested focus areas, strategies and processes to deliver benefits
More than just a diagnostic project, this work was focussed on clearly defining initiatives and deliverables with detailed strategies and processes for the delivery of benefits.
The final project report not only identified and articulated financial benefits but also a range of initiatives to drive non-financial benefits such as:
- Risk mitigation
- Process improvement (e.g. waste removal, simplification, efficiency)
- Enhancing service quality
- Improve effectiveness of existing policies
In all 26 initiatives were defined, not only across the in-scope spend categories but also a number relating to general procurement policies, practices and processes.
Jamecam developed a project governance framework including establishment of project working groups and a steering committee. Craig Smith (Director – Finance & Operations) was project sponsor and a member of the steering committee; he commented as follows:
“Jamecam Consulting completed a review of a range of Allergan’s key areas of marketing spend in late 2013. Jason had a refreshing approach. Clearly he is expert in his field, but his main focus was on understanding the particular needs of our business units and teams, then developing not only recommendations but also clear strategies and processes to deliver benefits. We always felt that practical outcomes were at the heart of his work. The whole exercise was very positive.”
Further to this work, Jamecam was engaged by Allergan to support a sourcing project (RFP) in relation to the provision of marketing logistics services. Jamecam’s role was to:
- Define the sourcing strategy, process and schedule/timetable
- Recommend a vendor respondent list
- Draft and finalise RFP documentation
- Provide subject-matter-expert support for response review and assessment