Case Study

A leading global pharmaceutical company

Establishing the investment value of post-deal sourcing governance

Driven by business needs, a leading global pharmaceutical company evolved from utilizing individual service contracts, into a full sourcing arrangement. Typical of sourcing deals that rapidly grow in terms of size and complexity, there is often a lag in the sophistication of the sourcing governance model. Over time this reduces the organization’s ability to drive continued value from the sourcing arrangement.

PA Consulting Group was engaged to conduct an analysis of the current governance and management practices. Working with the client, PA conducted a multifaceted Sourcing Governance Diagnostic that reviewed sourcing governance on both a strategic and tactical level, focusing on three areas:

• Degree of alignment with sourcing value drivers
• Level of investment in sourcing governance
• Effectiveness of the contract.