Supplier Screening Criteria
Identification of Initial List of Suppliers
Suppliers are identified through secondary research, industry articles, association reports, and government publications
Basic details were captured to get more knowledge and insight for the suppliers identified
Operational and functional capabilities are mapped by analyzing supplier product and service portfolio
Primary research was conducted to validate the information captured from secondary research
- Personnel contacted during the course of the report include:
- Industry Experts
- End Users using the products
CDMOs not offering API manufacturing services are listed under eliminated supplier list
Each supplier finalized was benchmarked based on the capabilities being offered by them
All the capabilities mapped were assigned weightage as per category standards
Rankings was ascertained based on the weightage provided and suppliers are recommended accordingly
Supplier Ranking Methodology
- The suppliers are divided into the below mentioned four quadrants in the matrix with the help of the weightage assigned to each of the categories:
- The weightages are considered based on category importance, alterations can be provided based on client specific requirement
- The operational capabilities are laid on the X axis
- Suppliers gain advantage if they possess more capabilities as compared to their peers
- Suppliers ranked higher in this category might have good employee strength, higher revenue, greater geographical presence, etc.
- The functional capabilities are laid on the Y axis
- It defines the core business capabilities of a supplier
- Suppliers get ranked higher in this category based on production volume, types of products and services offered, lead time, etc.
Operational Capabilities - Weightage
Years in Service 15%
Geographical Service Presence 30%
Revenue Generated 10%
Functional Capabilities - Weightage
Use molecule 35%
- Biotech type
- Synthetic type
Other functionalities offered by CMOs15%
Research Methodology - Data Collection
Primary Market Research
GVR conducts a combination of qualitative and quantitative research, where we get into in-depth conversations with end consumers and suppliers to understand the offerings present in the market, along with their procurement best practices. Two types of approaches are mainly followed: Exploratory (open ended questions) and Specific (problem specific questions).
- Focus on small groups of people (7-10), who respond to online surveys
- Information can be collected remotely without personal interactions
- Personal interaction with the targeted respondents to collect information and data for a series of questions
- Open and Close ended questions based on project requirement
- Apt for large sample size to measure quantitatively
- Ideal for Supplier Benchmarking and mapping of core capabilities
Secondary Market Research
Our team specializes in collecting information from secondary sources such as: supplier websites, information published by government agencies, media, chamber of commerce, etc. The sources are well documented which can be referred by the client for further clarification.
- Our analysts scan through different supplier websites to get knowledge on the category
- Government websites and online libraries are consulted for documented data
Paid Databases and Commercial Sources
- It comprises mainly of paid databases and journals where structured data is available
Industry Articles and Educational Institutions
- Articles published by a governing body or a person who is a knowledgeable veteran in the category field
- Educational institutions conduct a wide array of sourcing related research projects, which we refer to in our projects
Steps for Information Gathering
The scope was build and shared with the client, taking into consideration the key problem of identifying CDMOs for API manufacturing and building a robust sourcing strategy for better negotiation and cost savings opportunities.
The list of suppliers identified for the report were shared with client for approval, and subsequently the respondent and RFI documents were confirmed. The API manufacturing CDMO market is fragmented with Lonza and Siegfried being the leaders for the category. The research was conducted as non-probability sampling by defining the variables. The study was executed as a non-branded study where the name of the client was not revealed at any stage.
The primary mode of conversation with the client was dependent on email and phone surveys. The telephonic surveys are in-depth and possess high degree of confidence on the data captured. The data collected are further validated with secondary research and also confirmed with other industry experts. The filled RFIs are documented as a reference point for the client which might be used for further communication.
The data collected from primary and secondary sources are provided with examples to provide the client a case study based approach on the analysis that has been derived. The suppliers selected and ranked are backed by a robust weighted methodology, which gives the client a clear comparison of different suppliers that are identified for the API manufacturing CDMO category. The sourcing strategies listed in the report are validated from industry experts and the most prevalent ones are highlighted.
Data Representation and Recommendations
The analysis for the report are divided in different sections which comprises of Market, Supplier, and Sourcing Intelligence. The chart based recommendations enables procurement leaders to make appropriate decisions for selecting correct supplier selection and sourcing strategies. We have provided information on key suppliers along with their capabilities for ease in comparison among them.
Well informed decisions
Selecting appropriate engagement model
Category Spend and Factors influencing growth
Cost Saving Opportunities
Procurement Best Practices
Extensive Supplier Analysis
Supplier Information Gathering
Identification of suppliers through secondary sources
Suppliers are identified through secondary research, industry articles, association reports, and government publications.
Capturing basic details of the suppliers
Basic details of the suppliers such as website, headquarters, and business descriptions are captured.
Creation of RFI and introductory email
A RFI and an introductory email is created which is to be shared with the respondents for primary information gathering. The respondents can be industry experts, suppliers, or/and associations.
Client confirmation on list of suppliers and RFI
Client confirms on the if the suppliers identified suite the project requirement and the RFI which is to be shared for information gathering.
Roll out of RFI for data collection and simultaneous secondary research
Changes suggested by the client are incorporated and shared with the respondent to engage into in-depth conversation related to the category.
Assigning weightage to capabilities for appropriate ranking
Based on the category type and requirement of the client, each of the capabilities identified are assigned weightage to determine a score for the supplier.
Ranking suppliers to identify the rulers, challengers, niches, and loungers
The scores are plotted into a graph which highlights are rulers/leaders for he category. It helps the client to make a decision on the type of suppliers which they should contact or focus on.
Methodology to identify key information for suppliers
- The details on employee strength are captured from annual report and supplier websites
- For public companies the number of employees for a specific business segment are estimated from “Business Unit to Revenue” ratio
- In case of private companies, if the employee strength details are not provided in website, we consult paid databases which we have subscribed
- To validate the information captured, “Employee to Revenue” ratio is benchmarked for other suppliers
- In certain cases, the data will be highlighted in blue font (low to moderate confidence level), if reliable sources are not identified
- Revenue details for public companies are captured from annual reports
- For private companies, “Employee to Revenue” ratio is considered for calculating the estimated revenue generated for the category in focus
- Supplier market share details (if available) are utilized to validate the revenue figure which is being estimated
- Production volume comparison of the suppliers identified is also one the parameters used by us, to provide accurate information on revenue
- Certifications awarded is one of the critical parameters for selecting a supplier as it showcases the quality of offering which is being produced/manufactured
- A supplier bolds out/highlights the certifications received to gain trust of its customers (in websites or supplier brochure)
- We confirm/verify/search for certifications received for an offering or supplier from certification bodies such as:
- British Standards Institutions (BSI)