Mass media about us, “How PHYTOPHARM company saves up to 40% of the procurement budget thanks to electronic tenders” in an interview with Vladyslav Malynin to the EVO Business media resource

As we have already reported, PHYTOPHARM not only actively uses the e-procurement platform, but also shares its experience of using the platform, helping to develop and improve the public procurement system.  Such a proactive position of our company attracted the attention of the popular media resource EVO Business, which published an interview with the CEO of PHYTOPHARM PJSC, Vladyslav Malynin.

How tenders were held earlier and why the process was changed?

Before we started cooperating with Zakupki.Prom, we already had experience in tenders. We called suppliers by phone or wrote to them by email with an offer to participate in our procurements.

In 2019, an analysis of the company’s existing procurement system was carried out, after which it was decided to revise the very concept of the process, to take a course for innovation with the introduction of electronic procurement. However, resistance was often encountered at the start. Many of the potential counterparties did not want to make an effort and preferred to do everything in a “proven way”. That is, so that we immediately choose them. We had to convince and say that we have the same rules of the game for everyone. It was a complicated process.

After comparing e-procurement sites that meet all our needs, Zakupki.Prom turned out to be the most convenient for us. New suppliers that we can attract also played a role here. As for the procurement process itself, the main goal was transparency and increased competitive environment.

What does the procurement process look like now?

Our internal customers make annual plans, they are checked by the economic security service, and then approved by the tender committee. The technical specification for the tender is prepared by the department for which the purchase is made. In the beginning, not all employees were satisfied with such innovations. There was resistance when people said, “We didn’t work like that.” However, we held meetings with the heads of departments and explained why this was important. We also conducted training together with the platform. And since the beginning of last year, purchases have been fully digitalized.

We started with a simpler one, we conducted a request for the offer price. So, you can see what offers are on the market. Then we started using tenders.

We work according to clear regulations. That is, it does not matter what number of procurements, apart from some exceptions, they are all performed through Zakupki.Prom. If the tender has not been held twice, a negotiation procedure can be carried out. The process of medicines and active ingredients procurement falls under the exception. The pharmaceutical industry is very regulated, so we simply cannot legally carry out some procurements through an electronic platform.

Manufacturing process
Manufacturing process

For us, the main criterion for choosing a winner is the price. It is usually possible to save from 5 to 40% with the obligatory observance of quality characteristics. Yes, of course, we, like many customers, also apply non-price criteria, but the basic principles are taken into account, such as:

  • добросовестная конкуренция среди участников;
  • maximum economy, efficiency and proportionality;
  • non-discrimination of participants and equal treatment of them;
  • objective and impartial determination of the winner of the procurement procedure.

We value the participants, so it is important for us to adhere to these principles when conducting purchases, and, in turn, we receive the same attitude from suppliers.

Once we procured CCTV cameras, and with the help of an auction, the price fell by more than 40% of the expected value.

No less important for a successful purchase is a high-quality technical specification. Therefore, recommendations were developed for the preparation of technical specifications for each category of goods, works and services. We provide consultations and training for initiators of procurements. We also carefully check all the conditions so that there is no discrimination. We are for an honest and equal approach.

When you need to procure some new product or something complicated, we conduct a two-stage tender. At the first stage, we consult with the market, collect information. And then, the suppliers compete on the price and quality of goods.

How do we check contractors and control quality?

We have a rule: we control the procureent at all stages. We always check the counterparty before signing the contract. If necessary, we can request a certificate with an amount of net assets. For us, it shows the score much better than registries. The product is also always checked. We have our own laboratory for this.

When it is possible, we take into account the wishes of the supplier. For example, they need an advance payment, so we can pay earlier. We also offer all contractors to switch to electronic document management, but if the supplier does not have such an opportunity, then we will not insist on it.

In the near future, we want to form a full-fledged procurement department within the company. For example, an occupational safety engineer should think about occupational safety, and not about how to buy special work clothes.

The article was published on the official website of the media resource EVO Business: “How PHYTOPHARM company saves up to 40% of the procurement budget thanks to electronic tenders”

For reference:

EVO Business is a media resource dedicated to online sales and business on the Internet, its promotion and development. EVO Company develops the following projects: Prom.ua, Bigl.ua, Zakupki.Prom.ua, Crafta.ua, Kabanchik.ua, Vchasno.ua, Shafa.ua, IZI.ua, EVO.business in Ukraine; Deal.by, Satu.kz in Belarus and Kazakhstan, and is also preparing to launch several new projects.