Strategic sourcing saves a multinational biopharmaceutical company 16% on critical spare parts.

Ferguson Industrial provided 16% in cost savings for a multinational biopharmaceutical company during its New England facility expansion.

Historically, the customer sourced bed support screens through their chromatography columns’ Original Equipment Manufacturer (OEM). However, the OEM didn’t manufacture the screens. Instead, they relied on a third-party supplier who set the market price. Consequently, the parts carried high costs, accounted for a significant portion of the site’s MRO spend, and had extended lead times — creating cost and supply chain risk for the operation.

Our supply chain consultants reverse-engineered the products and discovered the original part designer and manufacturer. As a result, we removed supply chain layers and sourced the parts directly from the Original Parts Manufacturer (OPM), passing the savings directly to the customer.

1. The Ferguson site team contacted the Original Parts Manufacturer (OPM) to establish a direct relationship.
2. Supply chain associates worked with the customer’s engineering team to ensure they followed and documented all change control procedures before implementing sourcing changes.
3. Our team obtained cut sheets and data sheets to compare the OEM and OPM products. This confirmed they were an exact match.
4. Following confirmation, we submitted administrative work orders to update manufacturer information in the customer’s computerized maintenance management system (CMMS).
5. The entire process was documented in accordance with Good Manufacturing Practices (GMP).

Yes! Ferguson Industrial utilizes a proprietary Automated Supply Program for transparent, real-time inventory management. We integrated our ASP with the customer’s CMMS. Then, we worked in partnership with the engineering department to analyze manufacturing schedules. This collaboration allowed us to accurately forecast bed support requirements aligned with the product changeover schedules for the next six to twelve months. As a result, scheduled release purchase orders were created to cover the demand for the upcoming year, generating additional cost savings.

During the very first year of this sourcing change, we passed along a 16 percent savings to the client, with continued savings generated year-over-year.

Ferguson Industrial delivers cost savings to customers through dedicated product knowledge, strategic sourcing, and advanced supply programs. As your industrial supply partner, we rise to meet your challenges and ensure safe, reliable operations. Contact us today to discuss your biopharmaceutical or other manufacturing needs.