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 gene ...