Regional Global Meetings Consolidation

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Regional / Global Meetings Consolidation

• Andrew Gilkerson

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Pfizer Europes Meeting Category

• Pfizers Meeting Congress spend is in excess
  of 260M in Europe
• A significant category of spend
• Sales Marketing are biggest contributors
• Now managed by Procurement
• Prior to optimisation projects
• Diverse supplier base 59 event management
  agencies in 23 countries
• Country level processes various
• No common technology usage
• Lack of spend visibility
• No regional approach to meetings strategy
  variety of local initiatives

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How Spend is Managed Depends on Your View2008
Estimated Meetings Spend by Type, Spend Component
263MM
263MM
Spend by Meeting Type
Ground Transportation
Fees
HCP Meetings
Food Beverage
Ancillary Services
Pfizer Colleague Meetings
Spend by Component
Air
Third Party Congresses
Hotel / Venue
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The Attractiveness of Budget Areas
How we arrange meetings
Sourcing Initiatives
263MM
263MM
Pricing Model Measured Buying Performance Early
Congress Rates Agency Fees
Optimisation Project Addresses the Environment
Creates the Platform for Sourcing Initiatives
Regional Leverage Centralisation Policy Process
Efficiency Industry Innovation ROI/ROO
Measures Flexibility Resource /
Suppliers Compliance Consistency Reporting
Opportunity Analysis
Fees
HCP Meetings
Food Beverage
Preferred Suppliers European Coverage Discounts
Ancillary Services
Pfizer Colleague Meetings
Central Groups Desk Destination Influence
Air
Standard Hotel Contract Small Meeting Rates
Third Party Congresses
Hotel / Venue
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Regional Meeting Consolidation at Pfizer

• At Pfizer, within Europe our scope is
• All International 3rd Party Congress activity in
  Europe
• All colleague meetings domestic international
• All HealthCare Professional meetings domestic
  international
• However, we do not believe that regional
  consolidation requires a purely above-market
  approach
• Models must fit the need of business and be
  operationally effective

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What are the Key Components for Consideration
When Commencing a Regional Project?

• Data, data, data
• Company culture, structure stakeholder buy-in
• Resources
• Suppliers
• Regional / Local model the operating strategy
• What do you manage vs the supplier
• Process
• Regulatory environment
• Cost Model

Pity the Fool Who Cant Count B.A.
Baracas
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Outcome and Proposed Benefits at Pfizer

• Scalable Solution with Flexible Cost Structure
  pay for the services we need when we need them
• Unburden the business allow colleagues to focus
  on core, high-value activities
• Leverage our scale by channelling our volumes
  through European agencies
• Improve cost through smarter buying of key
  elements such as hotel space through agency
  leverage and sourcing measured sourcing
  techniques using event industry experts
• Standard processes driving compliance re FCPA,
  GPIHP, SOX Audit and record keeping European
  data for opportunity analysis
• Savings targets measurements event by event
  through smart vendor contracts and on-going
  management via KPIs
• Consolidated supplier base from 59 agencies in
  23 markets to 3 6 supporting the region
• Provide European Marketing teams countries with
  a harmonised European solution for International
  Congress

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Regional / Global Consolidation Effectiveness

• Can be successful, but must be a holistic
  solution
• How will the model be managed governance roles
• People, Process, Suppliers
• Continuous Improvement savings beyond
  consolidation
• Colleague engagement and behaviour SOP,
  guidance, feedback
• We used 5 guiding principles
• Quality
• Process Efficiency and Standardisation
• Flexibility
• Cost
• Compliance

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Thank You
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