McKesson Corporation | GBAT Supplier Management Tool

INDUSTRY:

Pharmaceutical

SERVICES:

Specialty Distribution

COMPANY SIZE:

76,000+ Employees

OPERATING BUDGET:

$198.5 billion (2017)

HEADQUARTERS:

London, England

PROJECT OUTCOME:

Significant ROI increase from automation of manual processes

“I was amazed by the eash of use and how much administrative lag was reduced through the process of using GBAT. The tool is able to calculate needed cost points, capture qualative information, and is connected to our other applications.” – Allison Mtchell, Director Product Management & Supplier Relations

OUR CLIENT’S CHALLENGE

The Generics Sourcing team within McKesson performs an annual Request for Proposal (RFP) with each Generics supplier, as well as mid-year requests whenever product pricing dynamics shift. This is McKesson’s process for soliciting bids from suppliers, evaluating those bids, and awarding contracts for items and pricing. This is a complex and data-intensive process with 1000s of products, 100s of suppliers, and millions of pricing data points to manage in order to evaluate bids and award a supplier with the contract to supply a set of products.

Historically, McKesson’s process involved manual record-keeping and spreadsheet-based evaluation, limiting the ability to expand to more products and vendors. McKesson needed a tool that would allow them to effectively execute the bid process to obtain the best available vendor offerings.

TEN2ELEVEN’S APPROACH

Working closely with McKesson staff, Ten2Eleven designed and implemented the Generics Bid Analysis Tool (GBAT), a custom application that allows McKesson to post RFPs and to allow vendors to bid on 1000s of items each year, with price points and conditions flowing into a centralized database for evaluation and scoring.

Key Features: GBAT utilizes audit tables to keep track of various iterations of supplier negotiations. Additionally, GBAT was built to integrate effortlessly with McKesson’s pricing and implementation applications, so that awarded bids can flow into the next system and be instantiated as vendor contracts without requiring re-entry of data.

 

THE SOLUTION

  • Ten2Eleven built GBAT, an application that:
  • Facilitates the solicitation of pharmaceuticals from multiple vendors throughout the country by housing item details that differentiates active ingredients, pack size, strength and form
  • Reviews bid information supplied by vendors to include cost and demand availability
  • Automatically analyzes bids across multiple suppliers for incumbency, pricing, inventory and ramp up time
  • Sends awarded and maintenance contracts to suppliers for pricing agreement and implementation

Technical highlights for the GBAT application are as follows:

Products:

  • SQL Server 2014

Technologies:

  • CSLA 2.0 (Component Based Scalable Logical Architecture)
  • .NET 4.0 Framework

Languages:

  • C#
  • SQL Server 2014

Tags: Application, McKesson, Pricing, Product Management, Supplier Management