Essay about Procurement at Betapharm Corp. Case

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Procurement at Betapharm Corp. (A) Notes

George Brannigan, Vice President
Doug Burke, Director of eSourcing
- Betapharm recently implemented the Emptoris ePass system, which facilitates eProcurement activities and, specifically, reverse auctions
Industry Information
- Pharmaceutical sales experienced average growth in the low teens between 1996 and 2003, single-digit growth was expected over the next few years
- Betapharm outperformed the industry
- Industry benefited from increased demand and projected future growth due to: o A growing elderly segment o Increased average life expectancy o Rising incidence of chronic diseases
- Pricing pressures from managed care and government programs and the migration to generic drugs due
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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.
Global Hotels
- Management constantly thinking of ways to decrease travel and lodging costs across the org, currently reserved approx. 500,000 hotel room nights annually for a total spend of 70 mil Euro during 2003
- Currently focused on major markets, UK and NA to negotiate better rates and decrease spending, but ignored potential savings from numerous other regions and countries
- Considering global hotels as a candidate for

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