Buy custom Procurement at Betapharm Corp. Case

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In a reverse auction, sellers compete to obtain business.

Procurement Process

- Each purchased product had a sourcing group

- Sourcing group- cross functional team comprising representatives dealing with procurement, quality, technical, finance, and logistics

- They determined which mode of procurement was best for a given product, implemented the agreed-upon method, and ultimately selected the preferred supplier

- For a product to be actionable, it had to lend itself to negotiation, have at least three suppliers willing to compete, and have specifications and requirements that could be clearly documented

- Betapharm compared the risk involved with a given procurement strategy and the related spend value

- The sourcing group considered the “total cost of owning” a product, which included technical troubleshooting, performance management, process improvement, required Betapharm assistance and, of course, unit price

E-sourcing Tools

- Sophisticated suite of products that assisted in the procurement process

- Suite contained:

o Decision-support tools

o Analytic tools

o Electronic auction/sourcing tools

- Purchased Emptoris ePass system to facilitate e-sourcing, issuing requests for information, ran electronic reverse auctions, and requested sealed bids

- Software incorporates sophisticated bid analysis and sourcing optimization program

- They rate priorities in a supply base, for example quality or total cost of ownership, and the software recommended winners based on the stated preferences and qualifications

Prequalification Process

- Suppliers are subjected to technical and quality audits

- Performed quality audits in accordance with ICHQ71, the U...

Food and Drug Administration code, and Betapharms’s internal procedures

- If no prior info on supplier, quality and compliance groups would conduct a full audit

- New suppliers performed an initial general systems inspection which comprised of an evaluation of the employees, plant, process, and documentation of each supplier

- If the supplier was not in compliance with the system standard, the team estimated the resources need to get the suppler up to standards and the company’s willingness to invest in the systems necessary to comply with standards and expectations

- After successful completion of the audit, intermediate product suppliers were re-audited every two years and raw materials supplier audits were updated every three years

Current Situation

Brannigan need to analyze the suppliers and competitive situation in both the global hotels and malic acid product spaces...

General points of the essay

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