Last spring, the IT procurement operation at GlaxoSmithKline held a supplier forum for its top 28 suppliers. There, Willie Deese, senior vice president of procurement, challenged the suppliers for additional efficiencies, innovations and cost reductions. By the end of 2001, the pharmaceutical giant reported that it met an internal cost savings target of about 17 British pounds (about 26 million U.S. dollars). The company, which spends more than $500 million annually on computer hardware, software and other IT goods and services, is on track to more than double the target. More important, targets for 2002 were incorporated into the actual IT budget for the year, says Howard Richman, director, IT procurement, North America, GSK. "This means the synergy savings we say we are going to get (from the merger of Glaxo Wellcome and SmithKline Beecham) are being fully committed by both IT and procurement. That is a very powerful interaction between the two."

savery@cahners.com