Procurement at Betapharm
LGM 201/205
Procurement at Betapharm Corp.
Question:
Can Betapharm use the Emptoris ePass system to source both, hotel rooms and malic acid?
Solution 1:
Use ePass for all procurement of hotel nights and malic acid.
Pros:
• Unified procurement process
• Larger potential cost savings
• More diverse supplier base
Cons:
• Less flexibility in choosing suppliers
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Solution 2 :
Use ePass for procurement of malic acid and all hotel nights in North America and the United Kingdom
Pros:
• Semi-unified procurement process
• Concentrates on major markets (80% of hotel nights are in the N. A./U. K.)
• Large number of bids
Cons:
• Leaves out all non US hotels
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Solution 3:
Use ePass for N. A./U. K. hotel nights and getting bids for malic acid but require 50% cost savings and complete quality and reliability audits to replace incumbent and allow incumbent to offer a counter bid.
Pros:
• Large number of bids
• More flexibility in the selection process
• Allows re-negotiation at a later date
Cons:
• Leaves out all non NORTH AMERICA/U. K. hotels
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Out of these three solutions I would recommend number three. It would generate a large number of bids for both the malic acid and the hotel rooms. You would still be able to insure the quality of the heavily regulated drug ingredients. The selection process for the malic acid supplier is weighted toward the incumbent who helped develop the process for turning malin into malic acid. This weighted process, while favoring the incumbent, lets them know that their prices are considered too high by Betapharm.
While this solution only covers hotel nights in North America and the United Kingdom, which is 80% of Betapharms lodging cost, it will encourage the eventual winner to
Procurement at Betapharm Corp.
Question:
Can Betapharm use the Emptoris ePass system to source both, hotel rooms and malic acid?
Solution 1:
Use ePass for all procurement of hotel nights and malic acid.
Pros:
• Unified procurement process
• Larger potential cost savings
• More diverse supplier base
Cons:
• Less flexibility in choosing suppliers
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Solution 2 :
Use ePass for procurement of malic acid and all hotel nights in North America and the United Kingdom
Pros:
• Semi-unified procurement process
• Concentrates on major markets (80% of hotel nights are in the N. A./U. K.)
• Large number of bids
Cons:
• Leaves out all non US hotels
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Solution 3:
Use ePass for N. A./U. K. hotel nights and getting bids for malic acid but require 50% cost savings and complete quality and reliability audits to replace incumbent and allow incumbent to offer a counter bid.
Pros:
• Large number of bids
• More flexibility in the selection process
• Allows re-negotiation at a later date
Cons:
• Leaves out all non NORTH AMERICA/U. K. hotels
• Less intimate knowledge of suppliers
• Risk of alienating current suppliers
Out of these three solutions I would recommend number three. It would generate a large number of bids for both the malic acid and the hotel rooms. You would still be able to insure the quality of the heavily regulated drug ingredients. The selection process for the malic acid supplier is weighted toward the incumbent who helped develop the process for turning malin into malic acid. This weighted process, while favoring the incumbent, lets them know that their prices are considered too high by Betapharm.
While this solution only covers hotel nights in North America and the United Kingdom, which is 80% of Betapharms lodging cost, it will encourage the eventual winner to