| Article ID: | iaor2006108 |
| Country: | United States |
| Volume: | 35 |
| Issue: | 1 |
| Start Page Number: | 7 |
| End Page Number: | 23 |
| Publication Date: | Jan 2005 |
| Journal: | Interfaces |
| Authors: | Metty Theresa, Harlan Rob, Samelson Quentin, Moore Tom, Morris Thomas, Sorensen Ron, Schneur Avner, Raskina Olga, Schneur Rina, Kanner Joshua, Potts Kevin, Robbins Jeffrey |
| Keywords: | bidding, computers |
As the world market for telecommunications underwent a massive downturn in the early 2000s, Motorola, Inc. needed to cut costs and increase productivity throughout its operations. It had to identify a method of reducing the time and effort required to prepare for and conduct negotiations with its suppliers, simplify their coordination, and optimize contract awards across sectors, to save costs. Motorola's global procurement function selected Emptoris's end-to-end Internet negotiations platform. Combining innovative bidding, online supplier negotiations, and scenario-based optimization analysis, it identifies the best procurement strategy while enhancing supplier relationships. Sourcing over $16 billion and saving more than $600 million, including $200 million specifically driven by the platform's advanced capabilities, Motorola changed its supplier negotiation paradigm and moved to a truly global success.