Strong competition requires the right tools to optimize the business procurement needs. The old negotiation methods just do not work anymore. To be honest, if you still rely on traditional methods to negotiate with your suppliers for sourcing needs, your company will have a tough time to remain competitive.
eAuction is an electronic auction to sell assets, raw material or other goods and services through online competitive bidding. Here, the suppliers bid online against each other for contracts against a published specification. eAuctions are becoming new standards for procurement as global industrial space is becoming more competitive. It has significantly impacted the way companies conduct their purchasing. eAuctions have numerous advantages that make it worth utilizing.
Online auctions can lead you to high cost savings when purchasing all direct and indirect material including services like transportation. Auctioneers can schedule the auction according to supplier’s time zone, while bidders can participate online at their convenience.
Numerous companies have embraced eAuction because they reduce human intervention from price negotiation resulting in increased efficiency and reduced errors. Also, the process transparency is increased while conducting online auctions as the trust based relationships are replaced by fact based relationships.
In comparison to traditional offline process where buyers and suppliers tend to meet at a common location and time, online auction provides more flexibility allowing buyer to reach out for suppliers across the globe.
Replacing your traditional negotiation process with online auctions streamlines your procurement process. You just need to specify your request and relax, while suppliers will be doing the rest.
All in all, eAuction advantages are significant which includes cost reduction, increased buying reach, increased process efficiencies and significantly decreased cycle time. Are you looking for a comprehensive web based eSourcing solution to conduct eRFx and eAuctions? eSupplier has various types of Reverse e-auction like English reverse auction, Dutch auction, Forward auction, Spot auctions for buying commodities, etc.. in addition you can also use RFx software to engage with suppliers fast.