E-Procurement Training

I just went through some preliminary training for a web based procurement system at a major pharmaceutical company here in Philly. These new bidding procedures are intended to be used for all types of procurement activities; commodity purchase, equipment purchase, subcontracted construction work, and professional services.

Part of the training session was a mock bid for an equipment purchase as a “reverse auction” bid.

The session was very interesting…but the impression I was most left with was how much cost pressure this new approach will put on all aspects of our industry…

Although the stated aim of the company using this new technology is not just cost reduction, it is obviously having a significant impact on the bottom line…

Good for them…sound like good business practice to me…

But when I hear about reverse auctions for professional services it begins to hit home a bit more…

Big Pharma spends less…Consultants get less revenue…pretty simple…

We may be left with the Quick and the Dead…

the Quick being the companies that are able (and willing) to adapt to the new realities of our business world…