Are you looking to get the best prices from your vendors? Whether you are in construction or a service-based industry, or if you regularly work with vendors in verticals like healthcare, retail, or government, using a reverse auction can help you get the lowest prices and best service from vendors.
Vendors may not immediately see why using reverse auction software is beneficial to their bottom line, saving them time and paperwork, and helping them build solid relationships with their customers.
It can be easy to convince vendors to participate in your next reverse auction by sharing these facts about reverse auctions and providing them with easy instructions to bid for your business.
Vendors Compete on More Than Just Price
Companies can save as much as 40% on procurement costs when they use reverse auction software, but most companies aren’t looking exclusively at price when they select a vendor.
When vendors place a bid through reverse auction software, the customer lays out the requirements. A reverse auction sourcing document puts weight on different aspects of the bid, such as service, location, price, and other factors. When a vendor places a bid, they know exactly what is important to the customer.
Reverse Auctions Put the Vendor in Control
While a Request for Proposal (RFP) document may be vague, leaving the vendor guessing what the customer needs or what is most important, a reverse auction sourcing document has specific requirements. The vendor has complete control over how low they are willing to go or what they are willing to sacrifice to win the bid.
Reverse Auction Software Makes the Bidding Process Easy
Sitting around a conference table trying to make a deal can be stressful, even for seasoned salespeople. Negotiations can be rife with emotions, power plays, and company politics. By using reverse auction software and following the guidelines within the sourcing document, any vendor can win the bid by providing what is needed.
Vendors may even find the reverse auction process a fun way to win new business.
Reverse Auction Software Reduces Paperwork
Reverse auction software streamlines the buying process, helping vendors and procurement experts save time and increase efficiency. Software with procure-to-pay functionality manages electronic requisition, approvals, purchase orders, invoices, and payments in the cloud, which is faster, less expensive, and more sustainable.
Once vendors understand the reverse auction process and how easy reverse auction software can make it to win new business, you will find your usual vendors, and maybe even a few new ones, willing to engage in the process.
Talk to a sourcing expert at ProcurePort. Find out what categories of your current spend are suitable for Reverse auction.