Professional buyers use reverse auctions

Some professional buyers are still wondering why they should use the reverse auction technology. It 'true that some elements are not good for reverse auction, but some are excellent opportunities for the reverse auction. This article will give a brief look in the top five awards buyer for the use of reverse auctions and how the buyer and their company can be more successful.

First, reverse auctions are used to obtain the best price available on the market at the time of the offer. In many cases, a reverse auction will result in a lower price paid than traditional sealed bids or negotiations. While the savings are sometimes difficult to measure precisely, and while some "hidden" costs (costs of changing supplier, set up costs, etc.), companies that use this technology properly conducted reverse auctions occur often 10% or more real cost savings. Whether you use the last price actually paid or reducing the bid price, you can accurately monitor, report and send the results to all interested parties a few minutes after the event is complete.

This leads us to the next buyer premium, which is process improvement. It 's true that it can take longer to put together a bid reverse auction, but this preparation involves a disciplined, comprehensive and fair bidding process and ultimately better decisions for selecting suppliers. Reverse auctions require special care be taken to write accurate specifications and assess the true historical spend information to more accurately predict your request to potential suppliers. This discipline process to improve productivity for future competitive offers because you will have quick access to information in the future. Reverse auctions reduce the time from weeks to minutes of negotiation. The shortened cycle time which, in turn, reduces costs and improve efficiency for both the buyer and the seller. In addition, you will be able to easily duplicate the bid package if you want to run similar events in future reverse auction.

Another bonus for buyers is the transparency offered. Reverse auctions can be used as a tool for transparent reporting for all accepted bids. This works especially well in the public sector, where your every penny and monitored. Systems offer on-line can usually save all data to generate reports quickly with the click of a mouse. If necessary, the live event can be viewed in real time by any interested parties, from any Internet connection or viewing on a screen in a conference room. Most systems are web-based reverse auction, which allows interested parties access to the system and watch the event live from their desktop.

The prize was increased organizational competitiveness subsequent purchaser. When you reduce costs and improve productivity, make your company more competitive and therefore more able to attract and retain customers who are looking for price reductions. Streamline the procurement process through online methods of competition, such as reverse auctions and eRFX, will benefit the organization and your career. When you can show measurable results and easily report the results of operations, both you and your organization will benefit.

The last buyer reward for the use of reverse auctions to talk about today is to extend the reach to potential new suppliers. When using online reverse auctions, you can record the opportunity to your web site, which will attract more suppliers to compete for your business. You still need to pre-qualify suppliers, but the greater number of suppliers will increase competition for the purchase, reducing the bid price. You can easily include more bidders through the rationalization of e-procurement process. If you want to open your purchase may be more difficult to identify new suppliers to create a competitive environment for a reverse auction. By submitting your events online in a public format, more suppliers will be able to find.

Finally, you should treat reverse auctions as a tool in the toolbox of procurement. Most organizations that are currently tendering will be able to see the value of the reverse auction process and recognize how it fits into their organization. And these organizations are saving time and money doing it right. So do not miss the opportunity to quickly connect and contract with your suppliers through reverse auctions .......