Creating a Holistic Procurement System - Pharmaceutical Technology

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PharmTech

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PharmTech Europe

Creating a Holistic Procurement System
The procurement organization rethinks sourcing for maximum efficiency and results.


Pharmaceutical Technology
Volume 36, Issue 11

Extending the reach of procurement

Approximately 10 years ago, federal agencies began using FedBid to buy common goods and basic services. FedBid is also available for commercial use and offers a highly efficient procurement solution for commodity products and basic services. There is never any cost to the participating sellers and no upfront cost to the buying organizations. A small transactional fee is added to the winning sellers’ bid and is paid by the buyer as part of the purchased price. After the buyer pays the seller, FedBid collects the transactional fee from the seller. Both parties win; the seller receives additonal revenue and the buyer nets average savings of > 10% (based on more than a decade of buying awards). If the product or service is not currently in the marketplace, the marketplace operator will at, no charge, find the right sellers and even train a company’s existing suppliers so they can compete on a regular basis in the marketplace.

Today, the marketplace has more than 57,000 approved sellers. Buyers use a simple and efficient Internet-based user interface to enter the requirements of what they want to buy (i.e., a specification), and FedBid, being a fully-managed marketplace, takes full control of the sourcing process to ensure robust competition from multiple sellers, validate quality assurance of leading bids, and delivers final seller pricing options back to the buyer for award. The marketplace is fair, ethical, and transparent. It enables dynamic competition by providing the best market pricing available at the time the purchase is completed. FedBid is rapidly branching out into state and local governments, schools and universities, and commercial organizations.

Looking ahead

Every organization has an opportunity to do a better job of buying indirect goods and services. Buying smart, saving money, and reducing risk by having better controls in place makes real economic sense, especially in today’s environment.

Gregg Brandyberry is senior vice-president of FedBid, and formerly senior advisor for A.T. Kearney Procurement and Analytic Solutions,
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