Steps Involved In Creating A Successful Reverse Auction
Running a reverse auction on an e-Procurement web site can be a bit tricky to get the hang of. When the right steps are put into play and a good facilitation company is selected, however, learning the ropes is a breeze. With everyone from Fortune 500 companies to government agencies taking advantage of reverse auctions to keep buying prices low, the benefits of mastering the process are clear.
To make strategic sourcing through reverse auctions possible, buyers can often benefit from incorporating these tips:
Select a reputable site – Using a good facilitator company to help with reverse auctions is often a must. Companies that provide access to all the tools necessary and a host of potential bidders should be sought out.
Create bid specifications – In order to receive fair and accurate bids, an RFP or RFI will have to be written. Whether this is done in-house or the facilitator writes the bid outline, a detailed set of specifications will be required.
Be open minded about bidders – Some of the best facilitators provide their clients access to a host of potential bidders to invite. They will also offer ways for clients to invite and qualify their own bidders. Keeping the field wide can assist in the strategic sourcing process and might even expose buyers to vendors they didn’t even know existed.
Review final bids carefully – Good facilitators will provide bid analysis and other stats that can help in the decision making process. The final selection, however, will be up to the buyer. This means careful review of all bids is smart to ensure the best possible selection at the most reasonable price.
Getting into reverse auctions can expose companies to better buying options. When this process is taken seriously and mastered, buyers often find they save money without impacting the quality of products or services requested.
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