SoCalBio Presentation on its Group Purchasing Program
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The Southern California Biomedical Council (SoCalBio) is a trade association serving the biotech and medical device industries in the Los Angeles and Orange County regions. SoCalBio offers a group purchasing program to help reduce costs for its small and medium-sized member companies. The program involves 15 vendors and generated $17.9 million in sales in 2014 for 105 member companies. SoCalBio aims to increase participation in the program by encouraging members to utilize more available contracts and adding new contracts.
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SoCalBio Presentation on its Group Purchasing Program
- 1. SoCalBio Open House & Vendor Showcase Helping Members Spend Money Wisely Welcome
- 2. Who We Are www.socalbio.org The Southern California Biomedical Council (SoCalBio) is a trade association serving the biotech and medical device industries in Los Angeles, Orange County and adjacent communities
- 3. SoCalBio Background Built with support from Rebuild LA (RLA) Incorporated in December 1995 Chartered as a (C)6, non-profit trade association Became fully functional by mid-1997 SoCalBio is one of 50 regional life-science associations in the US and one of the three California regional associations. The others are Biocom (serving San Diego) & BayBio AKA CLSA -- (serving the San Francisco Bay Area) SoCalBio is driven by entrepreneurs united behind a collective action agenda to Translate our regions excellence in basic life-science research into high paying jobs. Build on local assets to sustain critical mass in biocommerce Make our region competitive in the knowledge economy
- 4. SoCalBio helps Bioscience Companies Through Collective Action Focusing on: Mobilizing Resources Effectively Finance Capital Intellectual Capital Human Capital Fostering a Synergistic Eco-system Research Parks Partnerships Networking Advocacy & Building Social Support Putting Industry needs on the priority list of local governments Industry now perceived as an important pillar of growth
- 5. The Bioscience Industry Fundamentals A Healthier Cluster -- Albiet Spatially-Dispersed That Is Adding Jobs: Med Device Biopharma & Generics Digital Health We Are a MedTech Region with a Growing (and Getting Healthier) Biotech Subsegment Kythera Biopharma, Puma Biotechnology, Kite Pharma, Astellas Pharma, Lion Biotechnologies, ArmagenTech, Xenor, C3 Jian, NantHealth, MannKind
- 6. SoCalBio Serves a Well Established Life-Science Industry in the Los Angeles/Orange County Region Overall, the Los Angeles Metro Region (Los Angeles and Orange Counties) is specialized across non- clinical life- science industry, with about 88,000 + workers across over 900 firms in 2014.
- 7. The industry is composed of very small firms dispersed over a large geography having limited resources and little political clout
- 9. SoCalBio Group Purchasing Program: Designed to Help Small & Med-Size Companies Date started: 2006 Number of vendors: 15 2014 $ size of transactions: $17.9 million Number of SoCalBio users in 2014: 105 companies Number of contract utilization: 152 Program is carried out in partnership with the Biotechnology Industry Organization (BIO) SoCalBio is currently one of the top five (5) BIO affiliates in terms of revenues generated SoCalBio has moved into the top ten (10) in terms of BIO Business Solutions contract utilization
- 10. SoCalBio Group Purchasing Program Benefits The Group Purchasing Program is offered as a benefit to member companies to help in reducing the burn rate and cutting the cost of doing business To be eligible, the interested company must be a member of SoCalBio and/or BIO Participation in the program is voluntary Program generates significant savings to participating companies and, in some instances, company employees Participating companies would be able to track purchases and calculate the savings generated Savings exceed any membership dues paid to SoCalBio
- 11. SoCalBio Group Purchasing Committee Program is managed by a committee of volunteers from SoCalBio member companies. Committee functions include: Working with BIO on executing group purchasing contracts in SoCalBio territory covering Los Angeles and Orange Counties, the Inland Empire and Gold Coast communities Overseeing program performance Screening and selecting new vendors Marketing the program Trouble-shooting
- 12. Committee Members David Caulkin, Procurement, Integrity Bio Richard Cupp, Purchasing & Distribution Manager, HemaCare Corp. Ranil Fernandez, VP of Operations, Bioscreen Testing Services Wendy Fong, Materials Management, Grifols Biologicals Jacqueline Garcia, Procurement Manager, Los Angeles , Siemens Medical Solutions Marina Kreculj, Director of Sourcing, Kite Pharma Karen Mayo, Sr. VP, LA BioMed Matthew Pfeffer, CFO, MannKind Corp. Richard Tamaki, COO, Molecular Express Victoria Wilinski, Manufacturing Director, Second Sight Medical Products, Inc.
- 14. $Million Volume of Business, 2006-2014 0.042 4.07 6.27 7.2 13.6 14.4 13.007 15.2 17.9 0 2 4 6 8 10 12 14 16 18 20 2006 2007 2008 2009 2010 2011 2012 2013 2014
- 15. 15 Companies Utilizing Contracts, 2006-2014 7 53 49 58 80 86 106 105 107 0 20 40 60 80 100 120 2006 2007 2008 2009 2010 2011 2012 2013 2014
- 16. Actual VWR Program Savings Lab Supplies Spend Range Under SoCalBio-VWR Program Average Savings Off List Price Under SoCalBio-VWR Program > $2M $2,682,800 $1M - $2M $931,959 $500k - $1M $472,161 $250k - $500k $252,683 $100k - $250k $108,145 $50k - $100k $53,582 $25k - $50k $23,812 $10k - $25k $12,304 < $10k $2,696
- 17. Actual Office Depot Program Savings Office Supplies Spend Range Under the SoCalBio Program Average Savings Off List Price Under the SoCalBio Program >$500k $765,218 $250k - $500k $319,731 $100k - $250k $134,868 $50k - $100k $82,801 $25k - $50k $43,360 $10k - $25k $19,687 $1k - $10k $4,876 <$1k $491
- 18. Actual FedEx Program Savings Shipping Services Spend Range Under SoCalBio Program Average Savings Off List Price Under SoCalBio Program > $100k $39,302 $50k - $100k $16,336 $25k - $50k $12,895 $10k - $25k $5,062 $1k - $10k $1,168 < $1000 $129
- 19. 19 1. Increase number of contracts per company ratio from 1.40 to 2.00 2. Outreach to new contract users to expand their use of other contracts 3. Consider new BIO contracts 4. Add noncompetitive contracts to compliment BIO Business Solutions portfolio, e.g., employee benefits SoCalBio-BIO Business Solutions: 2015 Goals
- 20. Thank You Ahmed A. Enany enany@socalbio.org Southern California Biomedical Council Your Success Is Our Business www.socalbio.org Los Angeles Office: 617 S. Olive St., Ste 700, Los Angeles, CA 90014 Phn: 800-418-7079 -- Fax: 213-403-7688 scbc@socalbio.org