iNova Pharmaceuticals is a fully owned subsidiary of US health science corporation, Valeant. In Australia it owns a range of brands – such as Nyal, Duro-Tuss, Reef and Bausch + Lomb – across consumer healthcare, prescription medicines, skin and eye care.
Following the acquisition of Bausch + Lomb in 2013, iNova initiated a business-wide procurement transformation. Jamecam was approached in June 2014 and invited to pitch its credentials to support the review of marketing expenditure categories; subsequently we facilitated this project between July and December.
The project objectives were:
- To fully quantify current iNova spend across all marketing sub-categories
- Engage business stakeholders to understand current supply-chains and business requirements
- Critique current supply chains and, particularly, recognise opportunities for iNova to leverage whole-of-business marketing expenditure
- Identify marketing sub-categories with best potential procurement benefits and, with stakeholders, develop category plans and related sourcing initiatives for each
- Map out project plans for each category, focussing on initiatives to be completed before 31 December 2014
- Project manage these initiatives and drive maximisation of benefits delivery
- Ensure full engagement and buy-in from business stakeholders and vendors
Jamecam Principal, Jason Penrose, led this project and was implanted within the iNova procurement team as a subject matter expert. Jamecam’s role was to define, communicate and coordinate all project elements – working collaboratively with all iNova marketing teams and service providers, while reporting to senior management through a number of governance layers (project sponsor and steering committee).
The key marketing categories within project scope were:
- Storage, ordering and distribution of marketing collateral – marketing logistics
- Print and point-of-sale (PoS) production, procurement and management
- Graphic design and non-strategic creative production
- Digital marketing content production and deployment
The category and sourcing initiatives defined and delivered ranged across:
- Formal sourcing events – request for proposal / request for information
- Supply chain process review and optimisation
- Strategic vendor management
- Category integration and amalgamation
- Cross-business unit and brand collaboration and consolidation
- Direct vendor commercial and contract negotiations
Benefits that accrued from these initiatives included:
- Significant direct cost savings across all categories
- Risk identification and mitigation
- Clarification of vendor capabilities and scope
- Process simplification and improvement
- Deployment of a new marketing process workflow solution
- Improved whole-of-business marketing collaboration and vendor leverage
Jamecam’s work was overseen by Craig Timms (Head of Procurement, iNova Pharmaceuticals):
“iNova engaged Jamecam Consulting over a five month period in 2014 to support a full review of four major categories of marketing expenditure. This included data extraction and cleanse, category assessment and diagnostic, engagement of all business stakeholders and vendors, development of category strategies and related sourcing initiatives, across all three iNova business units. Jamecam then project-managed the delivery of these programs of work.
“Jason Penrose was embedded in the iNova procurement team to drive this project. Significant financial and efficiency benefits were identified and delivered. Jason established such effective relationships with key stakeholders that we drafted him in to support a number of vendor management tasks and contract negotiations. He also identified a range of procurement opportunities in out-of-scope marketing categories.”