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The Sourcing and Procurement Strategy of Sanofi- Aventis

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  1. Pharmaceutical industry
    1. Recent changes to the industry
    2. Recent news
  2. Sanofi-Aventis: company profile
    1. Business description
    2. Company background
    3. Group presence
    4. Business activities
    5. Employees
  3. Organization of the purchasing department at Sanofi-Aventis
  4. Company comparison / How a viable purchasing strategy is created
  5. SWOT - Analysis - Macro environment / explanation of the SWOT
  6. 9 Squares
    1. Discussion of the 9 Squares
    2. Square 4- backward integration of costs
  7. Competition in the pharmaceutical industry
  8. Strategies for competition
  9. Porter analysis
  10. Portfolio: procurement positioning
  11. Process of sourcing potential suppliers
  12. Anticipation of problems in the supply chain
  13. Purchasing process and quality control

Sanofi Aventis, a multi-national pharmaceutical company, uses purchasing structures and procedures that aim to cover all activities and all types of purchasing. The structure is based on placing the purchasing responsibility on entities and business units, under the supervision of a central team. There is a group wide procedure which must be closely followed by all entities and business units. Each unit may have its own local rules and procedures to abide by provided they comply with the group procedure. There are specific roles from purchase request to management decision. The role of the purchasing department is to assist the units making the request and to quantify their needs. From specification to supplier selection, the role of the purchasing department is to identify and select potential suppliers. Tendering and negotiations are led by the buyer and should enable a final decision to be made. Regarding contractual commitment to payment of invoice, the role of the purchasing department is to formalize the contractual relationship by preparing and signing purchase contracts and orders. Group level policies such as the Social Charter were distributed to all employees in 20 languages in order to outline the principles that form the common base of human resources within the Group.

[...] ) Square Concentric Diversification This square is a suggested idea of ?gaps in the market that Sanofi- aventis could fill. On the 1st of October 2008, the European Medicines Agency published the ?Public Statement on the Current Shortage of Radiopharmaceuticals in the European Union'[20]. Square Horizontal Diversification- This square suggests opportunities for Sanofi-aventis to expand into other fields, like other market leaders such as Pfizer manufacture drugs for animals. This could be a future possibility to increase revenue for Sanofi -Aventis. [...]

[...] Portofolio: procurement positioning The horizontal axis concerns the degree of difficulty associated with sourcing products/services and also the vulnerability of Sanofi-Aventis in the failure of suppliers to deliver right & on time. The vertical axis concerns the profitability/efficiency of the supply in the profit. Leverage- Transport system & ?Basic' raw material: Sanofi-Aventis gets myriads of suppliers able to supply a quality product, therefore the bargaining power is favorable to Sanofi-Aventis but a mutual relationship will be a benefit because of the sensitivity of the sector (quality, regularity of order) Strategic-R&D Staff & Key Management's positions are vital because fewer people are available in the market. [...]

[...] the Group under the sales area New product and supervision of a Procurement team Global supply central purchasing Regional Pharma team who manage supply needs and costs of Consumer these separate healthcare supply units and entities Vaccines Supply Spend Focus Group-wide Long Term planning E-sourcing Point(s) procedure Use of mathematical Equip with a Sets out the optimization in order sourcing portal standards that must to evaluate the ?Galaxy' which be followed by each distribution network provides tools entity. The and control the flow for sourcing and purchasing from origin to spend management. [...]

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