In this case study, we examine how the hiring of a new Chief Procurement Officer who was a TealBook champion meant that a biotech organization was able to cut costs in a very short period of time.
By leveraging TealBook, this CPO was able to expand their vendor master, find alternative suppliers, and increase competition among current suppliers. This resulted in a savings of $25 million in a single sourcing event and a 250% reduction in cost savings—here’s how.
The Challenge of Cutting Costs Quickly
This new CPO has a track record of joining organizations, re-evaluating processes, and finding cost savings wherever possible, making him a natural proponent of TealBook’s ability to save time and money. When he joined a certain biotech company, he was tasked with achieving significant hard savings within a very short period of time.
However, upon evaluating the current supplier base, he discovered that there was no contextual data to understand why certain suppliers were being used, or the value of doing business with the organization’s current suppliers. They needed a data solution to enrich their spend information with vital details to understand their current supplier relationships.
This data was meant to make their sourcing more agile, allowing them to find competitors of their current suppliers and eliminate tail spend in order to achieve their aggressive savings targets—and TealBook was ready to rise to the challenge.
Why They Chose TealBook
As a supplier data platform that uses machine learning and AI to harvest, cleanse and harmonize data, TealBook allows users to quickly source alternative suppliers to invite to sourcing events and create competition.
Not only did having access to TealBook allow for this increased discovery, but it also reduced pushback on inviting additional suppliers to sourcing events, as team members had the data to back up their claims right at their fingertips. With this increased competition, teams were able to identify more opportunities for cost savings and crush organizational goals.
Additionally, TealBook’s quick implementation and training made it easier to source suppliers within the platform. This organization was now able to use TealBook’s enhanced supplier discovery capabilities to find suppliers in a fraction of the time than they had been able to previously. Knowing the time constraints that each organization was facing, TealBook delivered a full implementation in less than five weeks.
The onboarding team scheduled the one-hour training sessions to educate on how to easily navigate the platform, granularly search for specific certifications, and enhance supplier discovery.
In addition to the $25 million saved in a single sourcing event after implementing TealBook, this biotech company was able to exceed cost savings by 250%, a feat that would never have been possible within the timeline without using TealBook.
TealBook can help find similar suppliers to compete with current suppliers to drive material savings to an organization’s bottom line. We leverage state-of-the-art machine learning concepts to deliver supplier data light years ahead of self-reported, manually collected and maintained data feeds. Unlike supplier data sources that repackage manually inputted data or depend on supplier self-reporting, TealBook uses a 5-step process to gather and refine supplier data through AI and machine learning.
We encourage you to contact us to schedule an industry-specific demo or learn more about how you can unleash procurement possibilities.