Online auctions take off for KLM

Dutch airline KLM has embarked on three-month project to identify areas for electronic procurement after three test online auctions gained savings of around 30 per cent.

The auctions, which took place in March, July and October, were for engine maintenance. But widespread savings through e-procurement are a long way off, Angelica Jarnaker the airline’s e-sourcing manager, corporate purchasing, told summit delegates.

Purchasing staff had concerns about e-auctions, she said. “They thought ‘if I suddenly get 30 per cent reductions...

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