E-Auctions
Introduction
Electronic auctions, are digital platforms where buyers and sellers conduct auction events online. They enable pre-qualified participants to bid on goods or services in real time, often resulting in competitive pricing and streamlined procurement processes. They are widely used in various industries to achieve cost savings, improve efficiency, and increase transparency in the bidding process.
First Principles
E-Auctions can take various forms, including 'Reverse' auctions, where suppliers bid to offer the lowest price for their goods or services, and 'Forward' auctions, where buyers bid to purchase items (excess inventory, assets etc.). Each event can be configured to maximise success across multiple levels of complexity and/or supply constraints by leveraging different types of event, such as English, Yankee, Dutch, Japanese, Brazilian etc.
E-Auctions are typically managed as either 'Self-Service' i.e. the strategy, configuration, supplier training, stakeholder management, event monitoring and support etc, are managed in-house by you and your teams, or as a 'Managed Event' where you leverage the experience and expertise of the technology provider or a specialist like TechConnect:ME to manage the event/program for you.
Of course there are also hybrid approaches, at TechConnect:ME we can provide you some advice based on your situation/objectives and you will also find some further tips and articles in our News & Insights section.
E-Auctions can be procured in a number of ways from ad-hoc or bundles of managed events through to a subscription to the technology for unlimited self-service events, both approaches have pros & cons so its worth consulting us before you embark on your auction journey.
Benefits
E-Auctions are particularly effective negotiation tools and can drive significant savings, especially when used as part of an organisation wide program designed to identify and unlock hidden value across your spend.
Savings potential varies dramatically depending on the category, the supplier margins and any supply market constraints, so make sure you are realistic in your expectations and seek out professional advice to set you up for success.
Head over to our Savings Calculator to estimate your E-Auction savings potential.
If you are considering deploying E-Auctions, whether it's a handful of pilot events or a high impact savings program let's talk, our experts have decades of managing and supervising successful auction programs and can help you find hidden value in your spend, unlock it fast and positively impact your economics at pace.
If you are interested in a conversation please click the button below to get in touch and one of our senior team will get back to you shortly...
