E-Procurement-in-New-Dimensions

Burlington northern santa fe railway multiple

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Unformatted text preview: illion in purchases for construction services, pallets, and a variety of other items have been made through reverse auctions. Savings have averaged 10%, and the company plans to increase its use of auctions by 60% next year. The company focuses substantial attention on preparing detailed RFQs and communicating actively with potential bidders to ensure a high level of competition. Burlington Northern Santa Fe Railway: Multiple initiatives are underway to utilize eprocurement. With over 40,000 employees spread out across the US and Canada from the two prior companies that had merged to form BNSF, the company was not leveraging its overall purchasing power, with substantial “maverick” local spending rather than full use of preferred corporate contracts. With new online catalogs, including digitized images of preferred supplier products, together with the company’s contract terms, conditions and pricing, BNSF expects that the new system will fully pay for itself within six months through increased use...
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