Cable & Wireless expects to save up to £25 million per year through the implementation of its eProcurement programme. eAuctions, a key component of the eProcurement programme, have already led to substantial savings, estimated at £2.5 million, from three recent auctions over a four month period.
One of the first areas of Cable & Wireless to reap the benefits of an eAuction was energy expenditure. The eAuction process was one of the factors that enabled Cable & Wireless to achieve a 22% reduction in this year’s energy expenditure, giving it a saving of £1.4 million.
Dale Wiles, key account manager at London Electricity, who won the bid, said: ‘The e-auction process allows greater transparency when quoting and gives an instant view on the competitiveness of our quote.’
A combined Cable & Wireless and Accenture team rolled out eProcurement capability to the UK in September 2001 and is currently rolling out the programme in the US with 100 supplier catalogues available for online purchase, thus providing 10,000 goods or services to Cable & Wireless electronically.
The next phase of the project is to roll out to additional new users in Japan in December and rest of Europe by the middle of next year. Once fully deployed, the system will be able to facilitate business-to-business commerce with over 500 suppliers.