CEMEX is one of the world’s largest building materials (cement, concrete and other products) companies. If you don’t know the history of building materials, you are missing out on one of the great stories of civilization. Without access to building materials on this scale, our societies would struggle to progress (if you're interested, there is a highly interesting overview in this podcast that’s worth a listen).
As part of their operations efforts in the UK, CEMEX need to contract for substantial assistance in preparing “overburden strips”. This consists of heavy machinery, including excavators, moving large amounts of earth to access the materials underneath and prepare the area for operations.
To execute this tender, CEMEX used Scanmarket’s eAuction platform to share information with bidders and collect bids. Since this was a large tender, over GBP 1,000,000, seven bidders were invited from among their pre-approved list of suppliers.
To ensure they had a sound foundation, and because this was the first eAuction for CEMEX UK (although not for CEMEX globally), the team were particularly thorough during the preparation. Key internal stakeholders including quarry and operations managers were brought into the process both during preparation and for the live event. Specifications were quite detailed as the project required complicated 3D modeling to adequately describe the work to be done. Providing clear specifications is crucial to success in any eAuction, especially in one where the services being requested are key to pulling off the project.
CEMEX was able to make significant use of Scanmarket’s proprietary QuickCall service where project owners, stakeholders and bidders can get instant access to expert eSourcing consultants. The event was highly successful with strong bidding, solid savings, and substantial positive feedback from internal and external stakeholders.
When asked what advice to give to companies running their first eAuction within a specific organization, CEMEX UKs Senior National Negotiator had three key pieces of advice:
- Keep it simple
- Build on successes
- Keep the end goal in mind
These apply whether you are bidding for giant excavators or the smallest semiconductors.
For more information on how to improve the results from your eSourcing program, contact your Scanmarket account manager or reach us at www.scanmarket.com.