In May 2000, Sonia Syngal, director of procurement strategies and relationships with suppliers in the Sun Microsystems, is necessary to make an important decision. Under the leadership of Syngal, the company has just completed its first "dynamic bidding" pilot tests, and, as a consequence, reduce their power costs by 30%. Given these results, the potential for cost savings through the implementation of a dynamic system of trading on a widespread scale in the sun was great, on an annual basis, the company now spends about $ 9 billion in direct purchases of materials. While the potential to reduce costs significantly, it was clear, Syngal had a few other issues to consider, including: 1) suppliers of the Sun and the potential impact of a dynamic program of trading on the critical attitude of the company, 2) the reaction of the internal components of the Sun, that is, its commodity Directors who have spent years trying to determine how best to work with suppliers of the company, and 3) the selection of the best software provider, which would be difficult in a crowded space "Hide
. by Chuck Holloway, Andrea Higuera Source: Stanford Graduate School of Business 18 pages. Publication Date: August 27, 2002. Prod. #: OIT34-PDF-ENG
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