Allergan Maximizes Contract Savings with JAGGAER and SAP

Lab

Every research organization should be using a solution like JAGGAER. It should be a standard approach to procurement across the industry.

Vicki Blankenship, Procurement Services, eProcurement, Allergan

Customer Profile

Allergan is a global specialty pharmaceutical company that develops and markets innovative products for ophthalmology, neurosciences, dermatology, and medical and facial aesthetics. It employs approximately 7,500 people worldwide in more than
40 commercial locations, four world-class research and development facilities and six state-of-the-art manufacturing plants. With marketing and sales in more than 100 vacountries, Allergan reported a revenue of $4.5 billion in 2009.

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Challenges

Allergan needed an automated solution that would reduce requisition time and maximize contract compliance. The solution had to allow the company to direct spend to preferred suppliers, manage catalogs, contract prices quickly and accurately, and provide a seamless user experience with SAP. The biggest challenge Allergan faced was meeting the purchasing needs of employees, both in the office and in the lab, while achieving its overall business goals.

The procurement solution needed to be simple and secure but also allow its shoppers to be in control of getting what they needed as quickly as possible. In 2008, Allergan chose JAGGAER to enhance its global SAP SRM system.

Supplier Management
Effectively managed suppliers and reduced supplier risk without impacting shoppers
Reduced
Saved $2 million in spend eight months’ time
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Reduced order processing time from 10 days to under one day

Solution

JAGGAER integrated easily with Allergan’s existing SAP SRM. Employees were given faster purchasing power and the ability to simultaneously search our 40 supplier catalogs with a broad range of categories. The shopper’s cart is then converted to a requisition and routed within the SAP for approvals and delivery.This enables more strategic supplier management without impacting the shoppers. JAGGAER has reduced Allergan’s reliance on vendor managed inventory and has helped them meet their corporate compliance goals.

Bottom Line Results

  • JAGGAER reduced the time it takes to process orders from 10 days to one day, or even minutes.
  • JAGGAER “catalog management” reduces supplier risk, helps vendor management and speeds up communication.
  • Saved $2 million in eight months by directing spending through JAGGAER hosted catalogs.
Academic labs

The Future

With an 80 percent adoption rate, Allergan’s best-in-class procurement solution has already delivered impressive results across North America. More training and additional hosted supplier catalogs will enable Allergan to further grow contract compliance and savings and make a significant contribution to the company’s bottom line.

Download the Allergan case study in PDF