Why is your organization still seemingly unable to cut costs on office supplies? The answer isn’t what you are buying; it’s how you are buying. Introducing Reverse Auctions for Office Supplies.
Reverse auctions typically occur on an online purchasing event or an ongoing open bid for contracts. Buyers participate in the event with the assistance of a procurement firm and/or an online procurement portal using flexible, user-friendly reverse auction software. An office supplies reverse auction lets your organization choose the supplier with the lowest bid for its products and services and stretch your office supply budget.
However, to do this effectively, reverse auctions need to be meticulously planned and executed. Here are the six tips we recommend for conducting an office supplies reverse auction strategy.
1. Use a Real-Time Online Procurement Portal to Reduce Negotiation Time with Suppliers.
Real-time online reverse auctions for office supplies allow supply distributors to compete with one another to offer cheaper and cheaper prices to prospective buyers. With web-based, real-time software updates, reverse auctions dramatically reduce the time buyers spend negotiating with potential suppliers.
If your organization does need to flesh out the details of a purchase with a supplier, our cloud-hosted procurement portal lets you use our live chat function. This eliminates miscommunication between buyers and sellers, and facilitates negotiation during the purchasing event.
2. Use the Procurement Portal to Invite Verified Suppliers that Meet Your Unique Requirements.
Most business executives and procurement managers associate reverse auctions with tremendous cost savings, usually between 18 and 40 percent, depending on the spending category.
However, reverse auctions offer more than cost savings. They allow your organization to work with hard-to-find niche suppliers that offer unique products and services. They also allow you to locate suppliers that provide you products within a quick timeframe. Online reverse auctions offer an easy solution for organizations with unusual or challenging supply needs.
3. Leverage Data About Your Organization’s Previous Supply Spending.
Tap into your organization’s spending records. This essential data helps you not only understand your supply needs, but it will inform where you can maximize cost savings during the upcoming procurement. After a careful review, you can determine what your organization actually needs and what you can cut.
Moving forward, we recommend using our spending analysis software to track costs and suppliers. This easy-to-use software will help you identify areas for potential cost savings and maintain cost containment during the procurement process.
4. If Your Budget Allows, Outsource the Reverse Auction to a Third-Party Procurement Team.
Not every organization has a dedicated, in-house procurement team. If you have more money than time to dedicate to your office supply procurement efforts, let our team of procurement experts conduct the reverse auction for your organization. We can set up and deploy a global, online purchasing event within 24 hours.
5. If You Have Limited Budget, Take a DIY Approach and Manage your own office supplies reverse auction.
If your business doesn’t have the budget to outsource the procurement process, your organization can utilize our reverse auction software and conduct its own procurement process.
This do-it-yourself approach, while not as robust as our supported reverse auction process, will help your company cut costs and empower your organization to manage e-procurement more economically.
To learn how to use ProcurePort eSourcing software, we encourage you to request a 30-minute demo. One of our sourcing experts can walk you through the ins and outs of our software, and teach your organization how to use our procurement portal. Our web-based SaaS solution is highly secure and scalable. It’s also mobile-friendly.
6. Get a New eSourcing Service Provider. Enjoy Unprecedented Cost Savings with Our Reverse Auction Service.
Don’t spend a cent more than you need to on office supplies. Engage a cutting-edge eSource service provider to conduct a reverse auction and maximize your organization’s cost savings. Learn more about strategic sourcing by downloading our free whitepaper, Building the Strategic Sourcing Capability.
ProcurePort offers enterprise-class, cloud-based procurement solutions, including reverse auction and spend analysis software. To get started, schedule a free consultation with one of our sourcing experts. Our auction software and spend analysis services can provide you with great strategic sourcing options and increase your spending visibility.
You may also be interested in: How to Conduct a Reverse Auction for Maximum Cost Savings