One of General Electric's (GE) recent experiences with reverse auctions showed the company that the new sourcing tool just doesn't deliver the savings. One bid that GE conducted through a reverse auction potentially showed a 35 percent savings ― that is, its historical pricing was at one level and the lowest bid the company received was 35 percent lower. Even GE knew that would be too good to be true, says David Stec, vice president of The Center for Lean Business Management (CLBM), LLC. Stec spoke at the Paperboard Packaging Council's Fall Meeting, Oct. 17-19, in Hilton Head, S.C.
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