In 2001, when Delta Air Lines Inc. was grappling with rising fuel prices, terrorist attacks and fare wars, the $15 billion airline carrier set an aggressive goal of cutting 3% from its $10 billion annual spending on direct and indirect goods and services within three years. While its fuel costs alone total over $6 billion, the biggest logistical problem it faced was negotiating better deals with
the 6,000 other suppliers that provided the other 40%.
How did Delta do? The short answer is that it achieved its goal and then last year it saved another $200 million on top of that. The 'how' boils down to Delta's decision to automate, with the help of VerticalNet LLC, a Malvern, Penn.-based software vendor."It starts with the process, and the tool supports the process," says Bob Currey, Delta's general manager of sourcing innovation and supplier management.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
