Bayer Healthcare aims to double spend through e-auctions

Will Green is news editor of Supply Management
11 November 2013

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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.

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