Portland Bus Company CASE STUDY

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Case 4-3: Portland Bus Company

Situation:
Richard Kaplan is a buyer of Materials Department at Portland Bus Company.
Reports to David, director of Material Department
Be responsible for sourcing fabricated metal components
PBC was owned by Dawe Motors
First use of reverse auctions assisted by Laura Henning, business consultant for Bothe US operations
Approximately 290 components
Involving 7 suppliers
Current situation
Total annual purchases were approximately $250, and about $60 million to be sourced through Materials Department
10 suppliers were responsible for 290 components in 3 fabricated metal parts, representing about $2 million annual spend

BASIC ISSUES;
1. The use of new information technology (online reverse auction) in
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Announce the results to participants and respond to questions
Technical assistance should be available
Update electronic files and hard copies of the order-related documents to maintain the records and suppliers relationships
Make a flowchart to improve supply process efficiency and effectiveness
Apply time, money, people and other resource involve in early supply and supplier to assure continuous availability at the lowest cost in strategy spend.
Results:

Result 1:
If communicate with internal partners
Lower total cost of ownership
Reduced lead times
Share information and support coordination within the organization

Result 2:
If manage the preparation and event:
Reduce the risk to select unqualified suppliers
No unreasonable low prices on bids
Increase the competition
No supplier collusion
Avoid the risk of interrupting good supplier relationships
Save the cost of running the auction

Result 3:
If reverse auction process rely on

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