Novo Nordisk



Novo Nordisk

Procurement at Novo Nordisk

The process of procurement involves acquiring goods and services at an adequate cost in order to fulfill the needs or demands of purchase related queries with respect to quality and quantity, time and locality.

The company has adapted an e-procurement strategy that has three primary goals, these goals are optimization of contracts, increasing the practice of spending as per managerial plans, and enhancement of observance. The company has established these basic goals of procurement in 2005, which has significantly affected the company operations in a positive way. It facilitated company in saving funds in past. The company aims at making contracts that can cover 80% of company's indirect expenditure (Aberdeen Group, 2005).

The company has implemented SAP as e-procurement and Business warehouse solution. It has also created an IBX search engine and supplier network to ease and simplify the supply chain network. These electronic procurement strategies have contributed in saving 15% of company's expenses. The monthly transactions have been increasing as a result of these practices The company has learned to limit the various channels of procurement after implementation fo electronic system. The company has adequate level of support from its top management for the successful implementation and application of this system.

Supply chain at Novo Nordisk

The company has a global supply chain network. The company enjoys significant cost benefits as a result. The company keeps on reviewing its network in order to assess its effectiveness. The company has strengthened its risk management framework as an effort to make further improvements. In addition, it has also emphasized upon reviewing the performance of suppliers for its branded products located in regions where the legislation and regulatory enforcement is weak. The company has major portion of its supplier networks based in developing countries that has contributed in ...