Are you considering using reverse auction software to maximize cost savings and get the best deals on commodities and services for your organization?
Reverse auction software users typically realize savings of 18 to 40 percent on their purchases. You can refine your sourcing strategies to maximize not just cost savings, but time savings and the quality of the vendors you are working with by following these steps.
Conduct a Spend Analysis to Determine Your Budget
Every successful reverse auction should begin with an idea of what your needs are and how much you can afford to spend, as well as what is a reasonable cost. Use historical data to analyze past bids and expected pricing based on the cost of raw materials and supply and demand factors. Using software that integrates with your reverse auction software creates a seamless process from start to finish.
Determine the Parameters to Assess Vendors
Cost is typically the most significant factor when it comes to reverse auctions, but robust reverse auction software lets you also compare vendors based on other criteria. Determine the other factors you will use to assess bids, including speed of delivery, prior associations with the vendor, the vendor’s reputation, and the quality of goods to be delivered.
By starting your reverse auction with an RFP, you can reach out to new vendors and begin to build relationships. Getting RFPs from multiple vendors helps you ensure the suppliers participating in your auction can deliver to the specifications you need.
Choose Reverse Auction Software that Integrates into Your Existing Business Processes
By seamlessly integrating your reverse auction software into your existing business processes and software, you will save time and money. A leading marketing services company recently saved up to 18 percent on printing costs by adopting eSourcing methods that included reverse auction and procurement software.
Manage Vendors and Issue Contracts Automatically Via Reverse Auction Software
Conclude the auction by selecting a vendor and issuing contracts through your integrated reverse auction software solution to ensure consistency, save time, and minimize errors.
Reverse auctions not only save money, they can streamline procurement. There is no need to trade convenience for higher prices due to the time and costs of switching vendors when reverse auction software integrates with your accounting, invoicing, inventory programs, and processes, making it easy to work with new vendors.
ProcurePort is a global leader in providing eProcurement Solutions and Services delivered On Demand via the Cloud. Access industry leading technology including Reverse Auction Software, Spend Analysis Software and Contract Management Software via the cloud and experience world-class technology support and procurement consulting services. Contact us today to learn how our procurement solutions can help you control procurement costs.