Global Non-Production Procurement at Motorola: Managing the Evolving Enterprise Infrastructure

Abstract

In this chapter, we describe the experiences at Motorola to utilize e-commerce technologies to support and streamline non-production procurement globally, in an integrated fashion. We point out successes and discuss some of the challenges and considerations that the company faces moving forward. Abstract: Non-Production Procurement (NPP) includes the goods and services that are necessary to support the daily operations of a business. These items range from office supplies to consulting services and can easily represent one-third of a company's total spend. Traditionally, NPP has lacked the efficiency that is often achieved for the procurement of production-related items. As one way to overcome the remaining limits of the Internet-based electronic procurement solution, Motorola considers the use of mobile technologies. Besides further improvements of the purchasing processes, the addition of wireless access also allows for advancing the development of Motorola's own products and solutions. At this point, the focus of attention shifts from business process reengineering and system implementation to product development and feasibility considerations. In 1997, Motorola embarked on a project to utilize Internet technologies to reduce "renegade purchases" and to improve the leverage of its buying power. An easy-to-use, controllable procurement application allowed the company to reduce cycle times and process costs, and to improve process quality and information transparency.