These are just a few indicators for a better understanding:[\/vc_column_text][image_with_animation image_url=”3793″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][vc_column_text]At the same time, the pharmaceutical giant regularly faced challenges in its procurement department.<\/p>\n
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Some of them are as follows:<\/p>\n
The project began in October 2022 and lasted until the end of 2023. The strategy was developed by the Darnytsya team and IPSM headed by Maryna Trepova.[\/vc_column_text][vc_column_text css=”.vc_custom_1736507784500{padding-bottom: 40px !important;}”]\n
The general pool of work from IPSM for Darnytsya:<\/strong><\/p>\n
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- Analysis of the current state and identification of problems and gaps through GAP analysis.<\/li>\n
- Analysis of all business processes with all stakeholders.<\/li>\n
- Development of the future TO BE model of procurement and supply.<\/li>\n
- Conducting facilitation sessions with top management and buyers.<\/li>\n
- Development of a transformation plan.<\/li>\n
- Conducting interviews with all purchasers to analyze their knowledge and competencies. Preparation of recommendations for each employee.<\/li>\n
- Developing a new organizational structure in accordance with the new model.<\/li>\n
- Working out a training and development plan for all of the procurement and supply department employees in accordance with the results of the interviews and the new organizational structure.<\/li>\n
- Support of the Darnytsya procurement team by the IPSM team during the transformation.<\/li>\n
- Analysis and verification of all Master Data for the entire SKUs. Building a Category Tree. Finalization of the updated Master Data with the team and approval of the Category Tree for further migration to SAP S\/4HANA.<\/li>\n
- Implementation of Category Management at Darnytsya. Support of the Category Management pilot in the Foil Category: strategy development, training of the entire category group, mentoring and assistance. Defense of the Category Strategy by the Team. Recommendations and further support until the first results are obtained.<\/li>\n
- Training of the team on the topics \u201cIntroduction to procurement\u201d, \u201cCategory management\u201d, \u201cNegotiations in procurement\u201d.<\/li>\n<\/ol>\n<\/blockquote>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1736504237873{padding-bottom: 40px !important;}”]And finally, the procurement function was significantly improved with the systematic and strategic work of the Darnytsya and IPSM Teams.<\/strong>[\/vc_column_text][image_with_animation image_url=”3022″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default” top_position_desktop=”40″][vc_column_text css=”.vc_custom_1736504443717{padding-bottom: 40px !important;}”]Darnitsa’s procurement team at the IPSM training.<\/em>[\/vc_column_text][vc_column_text css=”.vc_custom_1736504299115{padding-bottom: 40px !important;}”]So today, pharmaceutical company buyers are not just performing transactional work, but fully managing categories.<\/strong><\/p>\n
How exactly did they manage to do it? Anna Demchenko, CFO of Darnytsya, will tell us in a conversation with Maryna Trepova, CEO of IPSM.<\/strong>[\/vc_column_text][vc_column_text css=”.vc_custom_1736504539937{padding-top: 40px !important;}”]\n
3. Interview with Anna Demchenko, Chief Financial Officer of Darnytsya Pharmaceutical Company.<\/h3>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1736505266659{padding-top: 40px !important;}”]\n
Part 1: About the Procurement Department transformation<\/h3>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1736505319433{padding-bottom: 40px !important;}”]\n
Maryna:<\/strong> Anna, let’s try to understand the details of the procurement function transformation project. Why was it so important for you to prepare business processes before implementing SAP S\/4HANA?<\/strong><\/p>\n
Anna:<\/strong> I’m happy to tell you about our joint experience, Maryna. Since SAP works according to international standards and practices, it is important to have prepared business processes for its implementation. Our previous processes did not quite meet these requirements, so we decided to adjust them together with you before implementing SAP.<\/p>\n
Of course, SAP could have been customized to the needs of a particular business, but this is much more expensive than a regular system implementation, which, in fact, required preparation.[\/vc_column_text][image_with_animation image_url=”3852″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default” top_position_desktop=”40″][vc_column_text css=”.vc_custom_1736507849129{padding-bottom: 40px !important;}”]Maryna:<\/strong> Why didn’t your company conduct this project on its own?<\/strong><\/p>\n
Anna:<\/strong> There are several reasons. Firstly, although we already had experience in centralizing the procurement function (we have been dealing with this issue on our own since 2015), it was not enough to implement Category Management. \u00a0At the same time, the division of all procurement into strategic and operational procurement, and the development of a Category Tree, in my opinion, are the most appropriate solutions for the company. It is important that SAP processes are built on the basis of a clear division of the functions and categories.<\/p>\n
Secondly, we felt the need to implement new practices and approaches that were known to you and your consultants. \u00a0Moreover, the initiators felt some resistance to a such transformation. Therefore, we invited consultants to the project to give us a boost in terms of changing the mentality and introducing a professional approach to Category Procurement Management.<\/p>\n
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Maryna:<\/strong> Why did you choose IPSM?<\/strong><\/p>\n
Anna:<\/strong> You have a lot of experience in terms of transforming the procurement function in different companies. The consultants you work with are skilled in Category Management, they have worked with businesses, even multinational ones, that were on their way to Category Management 15 years ago.<\/p>\n
We were also impressed by your positive reputation – this is something very important and there is nowhere to go without trust in such matters.<\/p>\n
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Maryna:<\/strong> What expectations did you have before starting to work with us?<\/strong><\/p>\n
Anna:<\/strong> At the beginning, we had a certain idea of what we had to change, but the audit you conducted revealed some shortcomings that we were not aware of. In particular, payment terms to suppliers that were considered unacceptable from a cash flow perspective. This analysis once again convinced me that the decision to move to Category Management at Darnytsya was the right one, and we were moving in the right direction.[\/vc_column_text][image_with_animation image_url=”3033″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default” top_position_desktop=”40″][vc_column_text css=”.vc_custom_1736505464852{padding-bottom: 40px !important;}”]Facilitation session at Darnitsa company.<\/em>[\/vc_column_text][vc_column_text]Maryna:<\/strong> There was an interesting stage of work after the initial analysis. We held a facilitation session with top management and the procurement team. Was this experience useful, in your opinion?<\/strong><\/p>\n
Anna:<\/strong> We like your approach. Firstly, there was a deep analysis of the old model, and secondly, all stakeholders, including top management, were involved in the new model. This allowed us to be as transparent and honest as possible within the team. Ultimately, this made it easier for our employees to cope with challenges.<\/p>\n
I remember when you showed me the results of the assessment of the existing processes, it was a revelation for the team in terms of the fact that it was not easy and in some ways offensive to accept that something was not working properly. That’s why the team’s involvement in a deeper study of future changes is the most effective solution.<\/p>\n
It is great to see the team realize that changes are necessary.<\/p>\n
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Maryna:<\/strong> How exactly did you manage to convey the value of the project to the CEO?<\/strong><\/p>\n
Anna:<\/strong> First, together we accurately outlined the project goals and future value for the company in numbers. This influenced the CEO’s final decision to go through with the transformation when he saw the impact of process optimization and the possibility of obtaining savings, which has a significant impact on the company’s financial results.<\/p>\n
Secondly, the overall involvement of all stakeholders from the first stage of project organization worked well. This helped us to understand how to allocate resources and how many additional consultants we needed.<\/p>\n
Thirdly, rapid changes in the world, including the development of artificial intelligence, require us to revise our strategies.<\/p>\n
I would like to emphasize the role of the project manager, who must inspire and motivate the entire team. In the beginning, we had a lot to work on, and we even had to change the manager. This is an extremely important aspect.<\/p>\n
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