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The head of procurement at Bayer Healthcare is aiming to double the proportion of spending carried out through e-auctions.
Richard Spoor, head of procurement at the pharmaceutical multinational, told the ProcureCon Europe conference in Amsterdam last week there was a 12-fold increase in the volume of spend through e-auctions in 2012 compared with 2011.
This amounted to “hundreds of millions of euros” and around five per cent of procurement spend, but Spoor wants to go further.
“I think we could get up to double that,” he said. “There’s not one spend category we have not done one in.”
Spoor said the auctions were carried out by an external provider, but there were limits to how far outsourcing should go. “I would not envisage full externalisation of a procurement organisation,” he said.
Buyers were told changing suppliers for Bayer was a lengthy process.
“Often a change of supplier takes two to three years, given the regulatory requirements,” said Spoor.