Bio Spectrum — May 2017

(Jacob Rumans) #1
Explain purchasing process
After requirement/specification is generated
as per URS (User Required Specification), we
research potential suppliers and enquiries are sent
to suppliers for offers and evaluation and
comparison takes place. Purchase order is placed
with clear delivery and payment terms and goods
are finally supplied.
Process changes in last five years
Purchase department evolved to supply
chain management and process. Regular vendor
evaluation process introduced. Vendor recognition
system in place and scientific and professional way
of forecasting and inventory management has been
followed.
Your role change over the last 5 years?
From single role of procurement to look
after complete business operations (SCM) as
manager – business operations.
What is Qualified Products List (QPL)?
QPL is a tool provided by the department of
transportation to expedite product identification
and acceptance.
What are key procurement metrics?
Total cost savings, quality, delivery, cost
avoidance, implemented cost reduction savings,
procurement cycle time, percentage of the suppliers
accounting for 80 per cent of the spend,
procurement return on investment, managed
spend as percentage on total spend and contract
compliance.
How do you ensure timely delivery of
orders?
We request for an order acceptance
(acknowledgement) and always make the supplier
confirm in writing that they will deliver as needed
or inform when they will deliver. Interact directly
with the vendor’s supply chain team and ask the
supplier to provide status updates. Need to know
when the supplier has shipped the material and
also tracking details, besides insisting to the
supplier for Advance Shipment Notification (ASN).
How do you handle delivery delay
from supplier?
Appreciate official communication from
vendor with reason for delay and probable delivery
time. Inform internal departments. If not acceptable
by internal teams, look for alternative options e.g.
substitute products, alternative vendors, internal
stock sharing, etc.

How earlier procurement management
team used to work and how it is different
from the current one?
Earlier, the entire work scenario was different
and the procurement department was framed as the
support system with no involvement in a strategic
partnership. “However, tables are now turned around
and transformation initiatives are being taken up by
companies and cross functional teams are now being
formed for such kind of sourcing projects where the
subject expertise is provided by the R&D personnel
and the sourcing manager concentrates on
negotiating the required KPIs & SLAs at the best
possible price and terms & conditions.
What are the key elements to have a
successful procurement team?
Pharma companies have realized that in the
bid to attain more cost savings and increased
efficiency, it is important to have a firm and a strong
procurement team. Once company manages to carve
a fruitful procurement team then managing tasks
such as supplier relationships, volume consolidations,
specifications harmonization, TCO models,
e-procurement solutions etc. become lot easy and
simple. Currently, working with suppliers is no

Explain the
purchasing process
We have a purchase
team. For a product which cost
Rs 50,000, certain senior executives have to approve.
If it is Rs 1 lakh, then approval of more executives is
sought. The department that needs a product should
fill the purchase request form. Post-line manager’s
consent, the request is forwarded to admin and three
vendors are considered for supply of product. Vendors
are evaluated and reference feedback sought before
raising the purchase order based on vendor quotation.
Then the supplier will supply the item. The items will
be received by the security. We have different security
for that, so the entry of material is made, received
form is filled before the product is given to the
department that made the request. For purchase of
item above Rs 1 lakh, the approval of a purchase
committee is a must.
Crucial criteria for choosing suppliers
First is quality and the next is time. Since we
have a lab and we do trials, time is a very important
factor. We also check the costing. Sometimes what

Maragatham R
Manager – Business Operations,
Spectrum Labs

Rajesh Nawale
Former Chief Manager - Procurement, Abbott Healthca re Pvt. Ltd.

Gali Cariappa
Senior Manager Admin and So urcing, Ecron Acunova

(^28) COVERStory BioSpectrum | May 2017 | http://www.biospectrumindia.com

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