Value-added starts with procurement
The Procurement and Logistics core business area offers innovative solutions for all aspects of merchandise purchasing and merchandise management in the Bayer Group. The comprehensive package that Bayer Business Services offers for Health, Safety & Environment (HSE solutions) also ensures compliance with legal requirements for the handling of hazardous substances. All products and services are geared towards delivering maximum value-added for the customer.
Bayer Business Services…
- negotiates purchase agreements with suppliers;
- populates and maintains electronic catalogs;
- manages orders directly in the customer’s system;
- researches suitable supply sources and orders the merchandise;
- supplements customer systems with tools that simplify processes;
- makes available complete order systems;
- assumes the entire procurement function for the customer;
- supports logistical processes and legally compliant waste disposal with high-performance IT systems;
- has solutions that ensure safe transport of (hazardous) goods in compliance with the law (including customs formalities and the creation of safety-relevant documentation).
Competence through experience
Bayer Business Services is specialized in procurement in non-production areas. This includes office, workshop and laboratory supplies, safety equipment and hardware and software. Bayer Business Services also offers consulting services and is responsible for managing the Bayer Group's fleet of company cars.
Furthermore, the service company handles all procurement operations (with the exception of raw materials needed for production) for the Bayer Group. More than 700,000 purchase order items with a total value of more than one billion euros are handled each year.
Advantage through innovation
Another strength of Bayer Business Services is the high degree of automation in the procurement system. Automation eliminates sources of error, relieves staff of time-consuming routine work and accelerates the ordering process. At Bayer, more than 80 percent of orders are now placed electronically. Modern e-procurement solutions offer a choice of more than one million articles from over one hundred selected suppliers. Payment in most cases is via the simple credit memo procedure. Smaller suppliers can also utilize web invoicing by uploading invoices through a special Internet portal, thereby automatically initiating payment.
Price benefits for customers
Bayer Business Services is able to achieve significant purchase price benefits for Bayer companies. And there are four main reasons for that:
- A coordinated procedure leads to large order quantities, which in turn can be used to obtain good prices.
- Specialized buyers are always up-to-date on the latest market developments.
- Bayer Business Services works with a global network, which means it can also take advantage of international market differences.
- The innovative software solutions of Bayer Business Services help to process procurement procedures efficiently and flexibly.