Bechtel Corporation

1
Bechtel Corporation
Electronic Commerce Project
B. Benne - S. Jacoby - J. Lindl - M. Posada UC
Berkeley, Haas School of Business
April 1999
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Get codes for CAD from Bechtel Catalogue.
Bechtel Catalogue (Stock codes, list of parts,
250 attributes) Definition of the BOM must be
driven by what is on the catalogue.
CAD Look at structure, bring it down and come up
with BOM.
Electrical
Piping
MPA Supplier (Item Stock code, price)
Engineering Material Systems
Quantity
Suppliers Pricing vs.Availability
Procurement Purchasing
PO
RFQs
Bid
Supply Chain Management
3
Bechtel Material Purchasing
I. Strategic Alliance Critical to what Bechtel
does. Reference Based Collaboration Vendor
Publishes and Provides. II. Competitive Bids
Design based collaboration. Custom Built
Solutions. Built to Order. III. Priced
Agreements Price/Spec Interface. Industry based
standardization. Standard Materials IV. Buy
Local Routine materials (gloves, etc.) MRO
Purchasing High level of standardization.

Engineered Equipment I.
Custom Fabrication II.
Transaction Value
Standard Materials and Major Bulks III.
Minor Bulks and Consumables IV.
Transaction Volume
4
E-Commerce Strategies
Price
I
Competitive bid
II
Protocol agreements but no price agreements
III
Case Specific
IV
Industry Specific
Complexity of the product
Stability of the market (from Supplier stand
point)
5
The problem

• Bechtel wants to buy locally where the project
  is located
• No long term relationships
• From a Supplier stand point, engineering
  equipment (I) is a market more stable than the
  market of Minor Bulks and Consumables (e.g.
  gloves)
• Motivations for suppliers - Wider scale
  
• -
  Long term relationship with clients
• Bechtel does not represent a driver for the
  suppliers
• Need to find a place where business is stable