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Article: E-procurement system delivers lower costs--and more.(Brief Article)
- Article from:
- Purchasing
- Article date:
- March 23, 2000
- Author:
CopyrightCOPYRIGHT 2000 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Tier-one automotive suppliers have been caught in a margin squeeze for several years. Their automaker customers demand annual price reductions, so tier ones have to keep finding ways to reduce costs. Some tier-one suppliers are finding that e-procurement systems not only deliver lower costs but other benefits as well.
Dana Corp. is a major supplier of automotive systems. In an effort to free more of buyers' time for strategic negotiations and to lower product prices by pushing more sales volume through a reduced supply base, Dana Corp. has recently implemented a global e-procurement system that it currently is using for a large number of MRO purchases.
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