The Use Of Reverse Auctions In Business – Frequently Asked Questions
Executive summary about reverse auction by Selectsourcing
online reverse auctions
In business the use of online ‘e-sourcing’ tools such as e-tenders and e-auctions is becoming commonly used to help buyers achieve rapid cost reduction. Cost savings can be considerable – on average 14% and lead times for sourcing projects reduced by up to 70%.
e-Sourcing is the use of internet technology used by purchasing professionals to find suppliers and negotiate prices for a wide range of goods and services. This typically includes activities such as supply market analysis, e- tendering, price negotiations (e-auctions) and contract management.
What are the benefits of using e-Sourcing versus standard purchasing techniques?
Traditionally buyers send out tenders listing the purchasing requirements and invite suppliers to submit prices. Each supplier submits one bid and does not have the opportunity to adjust his or her pricing in response to other bids.
What is an on-line reverse auction (e-auction)?
Reverse auctions are an ideal way for buyers to reduce the costs of goods and services, streamline the procurement process and increase profitability.
What is a fully-managed service?
A fully managed service incorporates a spend analysis of your company expenditure, suitable selection of e-auction categories, strategic category objectives, supplier research, developing lotting strategies, drafting the Invitation to Tender, management of suppliers, hosting the software, training the suppliers (inc helpdesk), managing the e-auction and post event review.
How do suppliers benefit?
Suppliers benefit in the following ways:-
A more fair, more competitive bidding environment
Ability to benchmark prices across their industry
Shorter sales cycles
Wider access to potential business opportunities
Do Suppliers have to pay anything?
No costs are levied to the suppliers for using our services
What types of organisation can benefit from e-sourcing?
Organisations across all industries are benefiting by using e-Sourcing to reduce the costs of goods and services, in order to stay ahead of their competitors.
Reverse Auction For Transportation And Logistics
Executive summary about reverse auction by Electronic Logistics LLC
As a result, auctions, using an electronic reverse auction platform, are growing to be popular and widely spread.
Primarily, it should be said that electronic reverse auctions may lead to a successful cooperation between producers of different goods to transport to various destinations and carriers.
Naturally, it is logical to wonder what both producers and carriers benefit from such cooperation. Furthermore, it is necessary to underline that the reverse auction provides producers with the possibility to choose from a large amount of carriers. Moreover, the open competition stimulates carriers to the improvement of their services and it may also result in certain decrease of costs of transportation for producers.
Also, it should be said that the implementation of new technologies, notably electronic reverse auctions leads to the implementation of high technologies in transportation and logistics at large. Consequently, the probability that producers will find their clients and carrier, which will transport the goods to the destination at possibly lower costs, increases.
Thus, taking into account all above mentioned, it is possible to conclude that the implementation of electronic reverse auctions leading to better cooperation between producers and carriers perfectly demonstrates the possibilities of new technologies applied to business at large and transportation and logistics in particular.
Check out the other guide on auto auction or car auction
