Companies of all sizes, including government entities, can benefit from the use of reverse auctions for specific categories of spend. Reverse auctions, when implemented successfully, can generate significant savings. As a powerful addition to your procurement process, reverse auctions create a competitive marketplace among your suppliers for the products, services, and even complex purchases. When implemented properly, online auctions can complement an organizations strategic sourcing process and help lower the overall cost of purchases; as well as, positively impacting budgets.
ProcurePort’s On Demand reverse auction software is delivered via the cloud as a SAAS solution. We provide end to end services for conducting a reverse auction for any category of spend. Be sure to view a list of the categories sourced and see if there is a particular category of spend that ProcurePort can help your organization with generating cost savings.
ProcurePort can be your full service partner for conducting reverse auctions. Our full suite of services includes:
- Assessing your spend category and determining suitability for reverse auction
- Validating Supplier List
- Additional Supplier Sourcing if necessary
- Provisioning the web – based reverse auction solution
- Creating Bid Strategy
- Supplier Training and consultation for the reverse auction
- Initial setup and management of the entire reverse auction event
- Post Bid analysis and reporting
ProcurePort provides per event pricing as well as package pricing. Contact Us to learn more about our full service offering.
What Is a Reverse Auction?
In simple terms a reverse auction is exactly opposite of a forward auction (eg: eBay). In a reverse auction, the buyer initiates the auction as opposed to the seller (as is the case in a traditional forward auction). The end goal of a reverse auction is to purchase the goods or services at the lowest possible price.
Typically reverse auctions are conducted via an invitation only process. A buyer creates detailed specifications of the items/services that he/she is looking to procure. An online reverse auction solution (such as the one provided by ProcurePort) is used to publish these specifications to a select group of verified suppliers. The reverse auction is scheduled for a specific date/time during which the invited suppliers log into the secure web based reverse auction platform and submit their bids in real time. The online auction solution provides real time bid feedback to the suppliers, which allows the suppliers to competitively improve their bids to win the business.
ProcurePort provides various formats of Reverse Auctions such as:
- Rank Only Auctions
- Sudden Death Auctions
- Dutch Auctions
- Japanese Auctions
- Custom Reverse Auctions
ProcurePort also creates custom reverse auction solutions for organizations with unique needs. Visit our Custom Reverse Auction Platforms area to read more about our custom auction solutions.
Reverse Auction Benefits
Procurement leaders of global enterprises are facing increasing challenges to do more with less in today’s intensely competitive landscape where spend management is one of the key factors of survival. Reverse auction software is a good addition to any strategic sourcing process and provides several benefits such as:
- Cost Savings
- Significant time savings related to collection of bids from various suppliers
- Benefits of discovering true market pricing including discovery of new suppliers
- A more transparent bidding process allowing suppliers to compete in real time to win the business
- Increased benefit of indirect cost savings generated via process automation that accompanies the implementation of a web based reverse auction software
ProcurePort’s Online Reverse Auction Software can generate double digit savings for your organization. Contact us today to discover how easy it is to implement ProcurePort’s e-Sourcing software. Be sure to check out ProcurePort’s custom auction software solutions configured specific to your business requirements.