A leading international air-conditioning manufacturer with factories in Jiangsu and Guangdong provinces. They manufactured small and large scale commercial air-conditioning systems.

Metal Machined Parts Sourcing Project 2007

279 types of machined parts of different specifications

5 qualified suppliers from China invited and participated

RMB 4,600,000

October 2007

279 items divided into 6 lots arranged in 2 sequential bidding events. Suppliers had to submit breakdown worksheets before and after the bidding event. Buy awarded individual lots to different suppliers for maximum savings. Bidding period set to be 30 minutes. Any new bids coming in the last 3 minutes would extend the period by 3 more minutes. Bidders could see their Ranks only. Transformational factors were adopted to compensate differences in transportation costs and payment terms.

The whole bidding lasted for 51 minutes with 87 bids and 7 extensions. Different lots generated different savings. On average 10% saving was achieved.