Reinventing the Supplier Negotiation Process at Motorola

Authors:
Theresa Metty;Rob Harlan;Quentin Samelson;Tom Moore;Thomas Morris;Ron Sorensen;Avner Schneur;Olga Raskina;Rina Schneur;Joshua Kanner;Kevin Potts;Jeffrey Robbins
Affiliations:
-;-;-;-;-;-;-;-;-;-;-;-
Venue:
Interfaces
Year:
2005

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Abstract

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 process.