Supply Chain Consultants // Management Services

Reverse Auctions

The Internet is rapidly re-defining industries & supply chains and creating high value opportunities for early movers.
Downward or Reverse Auctions is one such technology opportunity that allows a company to solicit the lowest bid from multiple invited suppliers, using the power of auctions to negotiate agreements.

Advantages of these types of online auctions (also known as Competitive Bidding Events) include reduced procurement costs (typically 18 per cent!); reduced time to market by accelerating the strategic sourcing process; the process uncovers high quality and globally competitive suppliers; to compresses the negotiation time; and it validates the competitiveness of incumbent suppliers.

Supplier capabilities, quality, service levels, and other key issues specific to both the company and the marketplace are also used to pre-select suppliers and develop "lotting" strategies before the auction.

The auctions are designed so that the lowest price does not necessarily win, so other important factors can be evaluated after the competitive bidding event.

Our team of consultants can assist companies in nominating a suitable auction provider; determining suitable supply markets; identifying sourcing categories that are best for auctions; provide guidance on lotting strategies; and identify how auctions can supplement the overall strategic sourcing process.

If you require any further information about our project management services or wish to know how our range of purchasing & supply chain solutions might benefit your company, please e-mail Paul McVeigh at paul.mcveigh@supplychainconsultants.co.uk or alternatively telephone Paul on 44 (0)1788 541505

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