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HBG saves by e-sourcing with NegometrixHBG is a Construction company with an annual turnover of more than 5.4 billion euro and more than 20,000 employees. The company's activities are also geographically diversified, with home markets in Europe and the USA. HBG focuses on property development, general construction, house building, concrete construction, bridges, tunnels, maritime works and roads. With group company Ballast Ham Dredging, HBG also ranks among the leaders in the world dredging market.In the course of 2002, a project was executed to outsource all Personal Computer (PC) support services for all employees as well as to upgrade all PC Hardware. In June 2002, Negometrix was asked to organize the purchasing auction in for all the PC hardware. Tebodin, one of HBG's daughter companies, did the internal project management. Tebodin Engineers and Consultants are European leaders in the design, engineering and procurement of complete plants. Preparation In the spring of 2002, all HBG divisions were asked to quantify their needs for new PC's. The result was a need for 4 different types of PC's; basic desktops, power desktops basic laptops and power laptops. Each of the 4 PC types had a certain quantity be ordered and a narrowly defined specification which had to be met by potential suppliers. In addition, there were some general requirement that the supplier had to meet such as version management, deliver time, response time, guarantee issues and pre-installed software. At the end of the project it turned out that there was no substantial qualitative difference between the competing offers. Therefore, qualitative aspects played no role in this case leaving price as the driving factor. Efficient supplier participation All major PC manufacturers were approached by Tebodin and trained by Negometrix. Training took place in the form of a remote on screen exercise accompanied by telephone support lasting about 30 minutes. Bidding resulted in a 9.6% saving On June 12, between 10.04 and 13.13 hrs, 31 offers were resulting in a saving of 9.6% of the best written offer. The average price decrease was 18.4%. The result was beyond expectation of HBG and Tebodin and it was recognized that such a result would have never reached by 'off-line' negotiations. The winning supplier was enthusiastic about the Negometrix concept. |