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the best option and price. As a matter of fact, in the reverse auction, hotels bids will differ greatly from one another because of its location and unique characteristics and it would be the company’s duty to analyze each and every hotel, which can be tasking and time consuming. Before utilizing the reverse auction for hotels, Betapharm must determine the type of hotel and price range it wants for its procurement spending. In addition to this concern, not many hotels with great quality and price have the technology or experience in electronic purchasing procedures; As a result, Betapharm would not be able to purchase great hotels such as boutique hotels, because of its inability to participate in a reverse auction. Another concern that may be associated with reverse auctions is the quality of the service based on the room fare. Despite the fact that Betapharm performs audits before approving a supplier, suppliers bidding low prices may have to balance out the degree of quality to the amount the hotel rooms are being sold for. Even though, Betapharm may obtain inexpensive hotel deals, they will find that these deals will have tradeoffs in service, quality, and other order qualifiers. Before implementing
Wesley PhillipsAbby GriffithBrianna Williams Asum Hussainthe Emptoris ePass system for awarding hotel contracts, Betapharm must evaluate the benefits and the drawbacks that are involved with this system.Finding a new supplier would be risky for Betapharm, because Tao is very reputable and is already one of the leading suppliers in the pharmaceutical industry. If Betapharm negotiates with the new Asian suppliers, the company will have to transfer chemical and process technology. In addition to this, Betapharm requires that each of its suppliers meet the quality-control standards as well as technical capabilities in order to consistently deliver the product. The new suppliers will also be subject to regulatory approval, which could take years. This would mean that Betapharm will have to wait until the regulatory process is complete. Taking the time to go through all of these processes is risky, especially when Betapharm alreadyhas a reliable supplier, Tao, its strategic partner in the development of Exelon. Tao is an experienced supplier who has been working with Betapharm for a very long time,and the processes will run more efficiently due to the fact that Tao already has an established relationship with Betapharm. Contrarily, negotiating with new, Asian suppliers for Malic Acid could be beneficial. The price from Tao is much higher than the quotations given by the five potential new suppliers, so Betapharm would save a lot of money. The procurement department has estimated that switching to an Asian supplier would help Betapharm save over 50% of their earnings.