The use of reverse auctions in business – frequently asked questions

By:selectsourcing

In business the use of online ‘e-sourcing’ tools such as e-tenders and e-auctions is becoming commonly used to help buyers achieve rapid cost reduction. In this scenario suppliers are invited to bid for the buyer’s contracts either by submitting their tender online and/or participating in a reverse auction.

Cost savings can be considerable – on average 14% and lead times for sourcing projects reduced by up to 70%.

Below are the most frequently asked questions about e-sourcing from business users:

What is e-Sourcing?

e-Sourcing is the use of internet technology used by purchasing professionals to find suppliers and negotiate prices for a wide range of goods and services. This typically includes activities such as supply market analysis, e- tendering, price negotiations (e-auctions) and contract management.

What are the benefits of using e-Sourcing versus standard purchasing techniques?

Traditionally buyers send out tenders listing the purchasing requirements and invite suppliers to submit prices. This normal takes weeks for all the proposals to arrive before they can be analysed. Each supplier submits one bid and does not have the opportunity to adjust his or her pricing in response to other bids.

With the use of eauctions suppliers are invited to bid on-line on a specific day and time. With this process, suppliers compete against each other in real time to win the buyer's business, The bidding process takes hours, instead of weeks or months.

What is an on-line reverse auction (e-auction)?

Reverse auctions are an ideal way for buyers to reduce the costs of goods and services, streamline the procurement process and increase profitability.

The process starts by sending out an Invitation to Tender to qualified suppliers which outlines your purchasing requirements/specifications. Suppliers that can meet the requirement bid against each other during the online e-auction. At the end of the auction the buyer makes the contract award, typically taking account of the final bids and other non-price factors such as quality and service.

What is a fully-managed service?

A fully managed service incorporates a spend analysis of your company expenditure, suitable selection of e-auction categories, strategic category objectives, supplier research, developing lotting strategies, drafting the Invitation to Tender, management of suppliers, hosting the software, training the suppliers (inc helpdesk), managing the e-auction and post event review.

What are the typical savings?

Typical savings for Direct commodities range from 8-23% and Indirects from 9-45%

Can I manage the e-Sourcing activity by myself?

Yes, for those organisations that have their own in-house programme, we offer licensed software only or ad hoc support for specific projects.

How do suppliers benefit?

Suppliers benefit in the following ways:-

A more fair, more competitive bidding environment

Ability to benchmark prices across their industry

Shorter sales cycles

Wider access to potential business opportunities

Do Suppliers have to pay anything?

No costs are levied to the suppliers for using our services

What types of organisation can benefit from e-sourcing?

Organisations across all industries are benefiting by using e-Sourcing to reduce the costs of goods and services, in order to stay ahead of their competitors.

Do I have to accept the lowest bidder?

No, other elements such as quality/service criteria are generally taken into consideration outside of the e-auction.

Will my company need to integrate any technology into our existing IT infrastructure?

No, as long as you have access to the internet you are able to use our software. There is no need to download any type of software.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: reverse auction, e-sourcing, internet auction, e-auction, cost reduction

Article Source: http://www.articles2k.com

Lisa can be contacted at:

SelectSourcing
The Technocentre
Coventry Technology Park
Puma Way, Coventry, CV1 2TT

Mobile: +44 (0)7834 403070
Office: +44 (0)2476 236818
Fax: +44 (0)2476 236024
Email: lisa.bryan@selectsourcing.com
Visit our web site at: www.selectsourcing.com

Top Online Auctions Articles
1). Don't Let Negative Feedback On Ebay Get You Down By : Stephen Pope Remember the student in school who complained (or even cried) because they only got a ninety-nine percent mark on an assignment or test. Meanwhile, some of us were relieved (if not ecstatic) to have merely passed. I actually witnessed one case where the math student insisted that he was not wrong. On rechecking the test, the teacher realized the answer sheet was wrong and not the student.
2). Hot As Pancake Items To Sell On Ebay By : In so many instances, people would always want their food hot: hot coffee, hot-of-the-grill burgers and steaks etc. That's why even on eBay people would rather go for those items that are selling like hot pancakes, so hot that they almost burn! Basically, eBay categorize these items as "hot" whenever it obtains bids more than 30. Then after, eBay would classify them as "hot items".
3). Spotting Fakes and Frauds on eBay By : Nicky Pilkington Fake items abound on eBay, and it takes much effort not to be duped by scammers who peddle these wares. There have been many painful stories relating how a seemingly legitimate item turned out to be either fake or defective.
4). Sell Like an eBay Powerseller By : Michael Ellis There isn't a week that goes by without someone asking me how to sell products on eBay. It's a great question! And I enjoy talking about the topic quite a bit, but my answer is always the same - sell like a Powerseller! Here's what I mean... An eBay Powerseller is someone that generates $1000 or more in sales for three consecutive months. You don't have look too far on eBay to realize that the place is literally crawling with Powersellers.
5). Why E-bay Is A Seller's Bliss By : David Riewe Today, more and more people are gradually opting for eBay as an alternative market site for their items. And the more people try on selling their products on eBay, the more they conclude that eBay is the best market site to sell products online. So, for people who want to know why eBay had fast become one of the best website for selling items, here are some reasons online shoppers need to know: 1.
6). Increase Your Ebay Sales With A “SquareTrade” Seal. By : Kirsten Hawkins SquareTrade are eBay’s chosen provider of dispute resolution services. If you want your buyers to have a little more confidence in you, you can get a SquareTrade seal, and put it on each one of your auctions. The chances are that you’ve seen these seals around. They show SquareTrade’s blue and green logo, along with the eBay user’s ID and the current date.
7). Tips For “Knowing Your Ebay Buyer” Before You Ship. By : Kirsten Hawkins Before you send anything to that buyer, you might want to get to know them, especially if you’re selling them a high-ticket item that you couldn’t afford to lose. Even if the buyer has paid, the PayPal transaction could still end up being reversed, leaving you out of pocket. So how do you figure out if you can trust your buyer? Look at their feedback for others.
8). Tips On How To Sell On eBay By : John Tiger There is more to selling on eBay and other auction sites than simply listing an auction and waiting for the money to roll in. Just ask the many, many eBay sellers whose auctions go unsold every day. We will help you learn to sell on eBay by looking at the different skills you need to learn to sell on eBay successfully. We will draw from the combined wisdom of eBay sellers with years of success and will offer tips and tools that can help you join them.
9). Is The Ebay Customer Always Right? By : Kirsten Hawkins I can answer this question for you right now: the answer is ‘yes’. In fact, the answer is ‘YES!’ – the biggest yes you’ve ever heard. Of the course the customer is always right. If you want to be a successful eBay seller, you should go miles out of your way to make sure every single one of your customers is 100% satisfied, however much time or money it might cost you.
10). Shopping Online Can Be Fun! By : David Riewe Buying on eBay can be a lucrative activity. However, if not managed properly, it can do shoppers more harm than good. Nevertheless, it's still the most convenient way of shopping online. So, to make the most out of E-bay when a shopper buys things, here's some way to do it: 1. Buyers should know how to buy safely. Wise buyers should know how to check the seller's reputation by prying on the seller's feedback section.

New Online Auctions Articles
1). The eBay Auction Site By : twok3 Which other site is more familiar to the ears of any person with any idea of what the internet is? Of course, there are those that do not know what eBay is but most of them don’t know what cars are either. That is why the title of this article is simply, The eBay Auction Site. You know what it is, I know what it is, and really, the only explanation we need for what it is, is its simple title.
2). Effectively Finding Products to Sell on eBay: To Consign or Not to Consign By : twok3 I remember the first time I sold something for someone on eBay. It was a great feeling. Not great, like, I’m getting married tomorrow or, I just won the lottery, but another type of great. I felt as thought I had helped someone out and made some extra money. Those two things combined can create such a fulfilling feeling. This act, however, that of taking ownership of someone’s belongings, then selling those belongings and receiving a commission is commonly called consignment.
3). Steps You Can Take To Ensure You're Getting A Great Deal At eBay By : Paul Bittle Everyone loves a great deal! Many people spend quite a bit of time searching for good deals on the items that they want and need – and when they find those deals, they experience a certain amount of satisfaction. These people typically haunt garage sales, stores that are holding sales, wholesale warehouses, flea markets, and especially online and offline auctions.
4). How to start buying cars an online auction By : Pradeep Aggarwal So you have decided to enter into the world of car auction. The very idea of looking at so many small and big cars on your screen is exciting to say the least. But what most of us fail to realize is what exactly we are looking for. And need to about the laws prevailing. It is important that you know everything about car auctions before you jump into the fray.
5). Learn why Online Auctions are the way of the future By : goflish In today’s world, time is everything. We all think to ourselves, “I really need to get rid of ___________.” But who has time to list an item in a newspaper, have a yard sale, or even place the item in view of the public with a for sale sign on it? Well, there is an answer. The internet has a way to sell your items that are colleting dust and taking up space.
6). The Beginners Guide To Safely Join And Use Ebay By : Robert Benjamin I don't think it matters where you are these days, if you mention the name ' eBay ', there is someone there who has either bought an item on it, or who has sold something on it, eBay has become a household name around the world. I started buying and selling on ebay around 7 years ago. There are thousands of people living in the U.S. that make full time living's selling item's on eBay, and thousands more that buy items on it daily.
7). Starting An eBay Franchise By : Ricky Lim Starting an ebay drop-off franchise is fast catching on ebay. There are millions of buyers everyday on ebay and let's face it, not everyone knows how to sell an item on ebay. Some people just are not interested or not familiar with how ebay works, the terms and conditions and all that stuff. They just want to sell their item and get some cash. That is where an ebay drop-off franchise comes in.
8). How To Price Your Item Correctly On Ebay By : Ricky Lim Many new ebay sellers often fall into the pricing trap. Either they price their items too high to be unsellable or they price it too low to make any profits. Some basic information on ebay pricing. Ebay has three prices that can be set for an auction. The "Buy It Now" Price Allow bidders to buy the item at a fixed price immediately without waiting for the auction to end.
9). EBay Business 101 for Newbies By : JULIUS Are you fairly new to eBay business? Or is just planning to enter the world of eBay business and test its waters? You have nothing to fear. Here are simple startup tips for you, newbie. Entering the eBay business means that you are setting up shop on eBay and become a seller. It is easy and risk-free. All you need to have is a computer, an internet connection and an inventory of items to sell.
10). How to Sell Your Products on eBay By : JULIUS Founded in September 1995, eBay is The World's Online Marketplace for the sale of goods and services by a diverse community of individuals and small businesses. Today, the eBay community includes more than a hundred million registered members from around the world. People spend more time on eBay than any other online site, making it the most popular shopping destination on the Internet.