How to use auctions in your procurement process to save time, improve quality and control your costs
During the procurement process, negotiating with suppliers can take time and a lot of effort. It’s a process that normally require many mails back and forward and some calls in order to get the best deal possible. What would you say if you know that all that work can be done by someone else in just one hour?
Some people love negotiations. We do. That is why we know that they require a lot of time and effort. Negotiating with suppliers is a tuff work. You normally don’t get the best offer right away. That requires some calls, couple of mails and a good bunch of patience. And this gets even more complicated when you manage international suppliers, with different currencies and time zones.
We have been supporting our customers, making this processes more simple, faster and efficient, simply by using a reverse auction system, where our suppliers can review their offers on real time and see how they are performing, in comparation with the others.
A revers auction starts when the buyer publish a request for proposal, defining the need and requirements to present an offer. This information is shared with different suppliers and they are invited to participate, with their offers. Suppliers can modify their offers, on real time, and will have information about what other suppliers are offering. So the system is transparent for everyone. At the end, you will get the offer form the best supplier and could move forward with the purchase. And the system will provide you with all the documents needed.
And the best part is this is not limited to single products. You can negotiate yearly supply demands, services or even long and short term contracts. But, remember to define your needs and requirements on the first place and give some time for your suppliers to solve any doubts.
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