URGENT PURCHASES THROUGH REVERSE AUCTIONS
Our Reverse Auction Solution just like any other is a type of auction in which sellers bid online for the prices at which they are willing to sell their goods and services. Sellers then place bids for the amount they are willing to be paid for the good or service, and at the end of the auction, the seller with the lowest amount wins.
Benefits of Our Reverse Auctions Solution
While cost-savings is a primary benefit of our Reverse Auctions Solution, achieving greater value to our customers is the ultimate goal. Additionally, the autonomous nature of our Reverse Auctions Solution allows smaller and more diverse suppliers to compete on a level playing field with larger suppliers.
Savings can also be realized in terms of efficiency in serving our clients.
This Reverse Auctions Solution has a reduced negotiation phase compared to traditional supplier negotiation with a set auction date that make it easier to meet deadlines and thus very effective and efficient in fulfilling required customer service levels – Reduced lead time.
How our Reverse Auction Solution Works
Our Reverse Actions Solution is hosted by an e-sourcing platform that automates the Auction assisted by our sourcing team that is well trained one.
During the Reverse Auction, Sellers submit their bids online bearing on their prices and samples or catalogues within a specify duration on a scheduled reverse action date. For now, bids are evaluated online and the Seller with the lower price wins.
We are gradually putting the necessary infrastructures in place to ensure that after submitting the first bid, the suppliers can typically see their position in the auction. The position can either be shown via a traffic light system (green, yellow, or red indicators), ranking, or by having full transparency so all suppliers can see the best bid(s). It is up to the us to decide what should be shown to the suppliers during the Reverse Auction. The Reverse Auction will last at a minimum predefined duration (30 minutes for example), but each time a bid is placed within the last two minutes of the Reverse Auction, it will automatically extend by two minutes. The Reverse Auction will continue until no further bids are placed in the final two minutes.
Our Reverse Auctions Categories
Our best categories sourcing with Reverse Auctions are simple in nature and do not have a high degree of specificity. They are:
- Printing/copier services
- Broad technology categories
- Raw materials
- Accounting services
- Office supplies
- Janitorial services
- Waste management
- Security guards
Our Reverse auctions Options
If a supplier wants to participate in the Reverse List Auction, they must bid on all product lines.
Here, many lots are advertised and if a supplier wants to participate on a lot, it must bid on all product lines within the lot.
Many product lines are advertised and strong competition is encouraged on the individual product lines. This way, suppliers can participate on individual lines. Suppliers win product lines of which they offer the lowest prices.