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Situation
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Blair’s business improvement initiatives included cost containment efforts,
along with plans to identify how an "e-enabled" Blair could improve efficiencies
across the organization. The company considered using reverse auctions to
streamline its processes and find ways to improve purchasing efficiencies
and performance with a strategic sourcing initiative. Additionally, Blair
wanted to generate more competition for purchases.
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Challenges
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As a traditional company, Blair faced challenges in transitioning from conventional
business methods to newer processes using technology. When Blair first heard
"reverse auction," the initial impression was that the company would be forced to
buy from the lowest bidder with no regard to service, quality and delivery. While
Blair wanted to find new suppliers, it also recognized the importance of maintaining
its long-term strategic supplier relationships.
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Solution
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The eDynaQuote training dispelled the "lowest bidder" myth by emphasizing that
Blair could limit auction invitations to pre-qualified suppliers and that the
company could award business based on more than just price. Specialists from
eDynaQuote worked with Blair to streamline its business processes in January
2004. They provided supplier training and bid process support to ensure that
Blair’s employees were comfortable with the process and to maximize supplier
participation. Guided by eDynaQuote, Blair held its first auction in March for
$1 million worth of corrugated supplies. Blair netted significant savings on
this semi-annual purchase. "It was an educational process to get up to speed.
It was a new concept to the majority of our group and the eDynaQuote team
helped us get there," said Randy Scalise, Vice President of Fulfillment.
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Additional Benefits
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In addition to saving money, Blair found that using eDynaQuote helps to
avoid cost increases in supplier negotiations. Furthermore, Blair purchasing
appreciates how eDynaQuote improves processes and reduces administrative work.
"The ability to create and store electronic specifications makes it so much
easier when I need to run another event. I just clone the last spec, make my
updates and send it to multiple vendors," said Jackie Bonace, Blair International
Trade Division.
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About Blair
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Blair Corporation, a multi-channel direct marketer of women’s, men’s, and home
fashions is ranked among America’s top 10 consumer apparel catalogers and is
in its 96th year. Blair mails catalogs and letterstyle promotions to existing
and prospective customers. Consumers also enjoy convenient online shopping through
the company’s fully-integrated Web sites.
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