Pharmaceutical Corporation – Strengthening Contract Management and Supplier Governance During Corporate Separation

Client Types Buyer
Life Cycle Stage Exit, Renewal & Transition
Sectors Manufacturing, Pharmaceutical & Biotech (Consumer Healthcare)
Undermasthead Shape

Pain point:

“We are managing multiple supplier contracts across a complex supply chain and need to restructure them without disrupting continuity of supply.”

Without clear governance and disciplined supplier management, organisations can face operational risk, inefficiency and value leakage.

See how Clear ensured continuity of supply while improving supplier performance and delivering cost efficiencies during a corporate separation.

Commercial Outcome

  • Ensured continuity of supply and operations during separation from a global pharmaceutical parent organisation
  • Successfully assigned, renegotiated and exited supplier contracts to support the new independent business structure
  • Implemented a centralised contract management and supplier governance framework across the organisation
  • Strengthened supplier performance and delivered cost efficiencies through strategic supplier engagement and segmentation

Situation

A global consumer healthcare organisation was separating from its parent pharmaceutical company and establishing itself as an independent business. This transition required the assignment, renegotiation or termination and reprocurement of numerous supplier contracts that had historically been managed within the parent organisation.

The separation created significant supply chain and commercial risks, including potential disruption to critical services, limited visibility of contractual obligations and the absence of established contract management processes within the new organisation.

Clear Consulting was engaged to provide specialist contract and supplier management expertise to ensure continuity of supply, support strategic supplier engagement and establish sustainable governance systems for the newly independent business.

Objectives

  • Ensure continuity of supply and operational stability during the corporate separation
  • Assign and renegotiate existing supplier contracts from the parent organisation
  • Manage exit strategies for contracts no longer required
  • Establish robust contract management systems and governance frameworks
  • Strengthen supplier relationship management and strategic supplier engagement

Services

Contract Assignment and Renegotiation

  • Provided guidance on assignment and renegotiation of supplier contracts from the parent organisation
  • Supported negotiations to secure favourable commercial terms
  • Managed exit strategies for contracts no longer required

Supplier Relationship Management

  • Established a Strategic Partner Programme for engagement with key suppliers
  • Implemented supplier segmentation and tiering based on risk and strategic importance
  • Introduced structured supplier governance, performance reporting and review meetings

Contract Governance and Systems

  • Implemented a centralised contract management system and workflows
  • Deployed the Contract Management Toolkit including obligation tracking and governance processes
  • Established SLAs, KPIs, service improvement plans and reporting dashboards

Commercial Improvement and Procurement Support

  • Supported RFI/RFP processes and procurement of new supplier contracts
  • Negotiated cost improvements and supplier consolidation opportunities
  • Implemented improved invoicing, payment verification and contract monitoring processes

Capability Development

  • Delivered training and capability building for procurement and business teams
  • Supported recruitment and onboarding of permanent contract management personnel

Achievements

  • Implemented a centralised contract management and supplier governance framework across the new organisation
  • Successfully assigned and renegotiated supplier contracts ensuring continuity of supply during separation
  • Strengthened strategic supplier engagement through the Strategic Partner Programme and supplier segmentation model
  • Delivered cost savings and improved commercial performance through supplier consolidation and renegotiation
  • Embedded structured contract management processes and internal capability for long-term sustainability
  • Introduced supplier sustainability and collaboration initiatives with strategic suppliers

Commercial and Operational Impact

  • Continuity of supply during corporate separation
  • Improved visibility and governance across supplier contracts
  • Cost savings and commercial improvements through renegotiation and consolidation
  • Stronger supplier performance management and collaboration
  • Sustainable contract management capability established within the organisation

We are managing multiple supplier contracts across a complex supply chain and need to restructure them without disrupting continuity of supply.