Leverage E-Auctions via a Procurement Team for Effective Procurement Operations
A major procurement goal has always been, and probably always will be, securing cost savings and enhancing your company's bottom line. But regrettably, the global pandemic's effects on the supply chain severely impacted the margins for many firms, putting additional pressure on procurement to quickly achieve price reductions.
Creating a robust supplier environment that methodically drives out cost and enables more strategic buying should be at the top of the agenda for procurement teams wanting to deliver on cost savings. The top procurement software solutions offer an E-auctions module integrated solution that makes procurement more transparent, fostering the growth of a strong supplier ecosystem built on fairness, securing competitive advantage, and maximizing value.
Why Your Procurement Team Should Leverage E-Auctions?
Increasing the transparency of your bid procedure will democratize procurement:
Vendors frequently lack a thorough understanding of crucial factors like the selection criteria, who their opponents are, and where they fall among them, making bidding historically a very unclear, if not obscure, process. Vendors frequently become upset by the lack of transparency and clearly outlined rules of interaction, which also restricts results.
It can take a lot of time and money to participate in traditional bids. It's challenging to build trust in opaque procedures that invite unscrupulous tactics and backdoor agreements, discouraging suppliers from sharpening their pencils.
By setting clearly defined rules and making actions visible, greater transparency throughout the procurement procedure, from real-time communication during the E-auction and sharing of e-auction results, democratizes procurement and levels the playing field. This crucial visibility enables suppliers to proceed and invest their time and efforts in ensuring they take the initiative and compete for your company as they need to.
Make the vendor environment competitive:
Cost savings are the stuff that healthy competition is made of. Preferred suppliers may stall and stop being proactive in keeping your business going forward if left unmanaged. E-auctions allow you to quickly and easily allow sellers to concurrently bid on goods and services using a digital platform, establishing a rich and varied competitive vendor landscape. They also connect you with a broad panorama of potential vendors.
You may promote a competitive atmosphere where providers congregate on the lowest price and reduce expenses with alternative and favored suppliers by utilizing e-auctions and implementing procurement methods like simultaneous bidding and adopting strategic auction scenarios.
Increase your bottom line savings by an average of 10%:
According to research, e-auctions result in bottom-line savings of 10%. Increasing the transparency of your auction increases the transparency of your firm, enhances reportability in your company's procurement, aids in developing trust-based relationships between buyers and suppliers, and increases efficiency and savings.
E-Auctions facilitate deployment and provide a rapid return on investment. Setting up an auction takes only a few minutes—just pick your goods, invite your suppliers, and begin bidding! Utilize a single platform to control the steps of bid gathering, supplier assessment, bid comparison, approval procedure, order, payment, and delivery tracking.