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Reverse Auctions for e-Procurement and e-RA

Reverse Auctions creating a competitive environment in which buyers realise a saving on procurement needs by enabling suppliers to bid electronically. Typically a e-RA (electronic Reverse Auction) provides a 8 - 24% saving compared to a more traditional procurement model.

Reverse auctions enabling purchasing requirements to be listed by either a single business or a collection of businesses on a single portal. Suppliers are then able to competitively bid on the requirements (services, products and commodities), in a reverse auction approach (i.e. the lowest bidder wins). AuctionV2 supports the straight forward reverse auction model, but also provides a much more useful “tender auction” hybrid. The principle is very similar to a reverse auction, the poster of a specific requirement is able, at the end of the auction, to select the supplier who is best suited to the requirement in hand. This may not, always, be the lowest bidder.

Some examples of where a “tender” hybrid is better suited than a straightforward reverse auction;

• The purchasing requirement maybe driven by both price and geographic region. Where the lowest price supplier may not be situated within easy reach of the purchaser, creating a long lead time.
• The requirement maybe for a commodity product of a specific quantity. The supplier is asked for pricing for additional quantity (per unit) above the initial volume, as well as the initial quantity. Here the best supplier may not be the lowest bidder for the initial volume, but maybe the most competitive when considered alongside the cost for additional quantity.
• The business maybe tendering for a wide variety of different requirements, where a single supplier is most efficient across a range of requirements and is therefore selected above a lower bid on an individual lot.

Whatever your e-RA or e-Procurement needs are Auctionv2 can customisable to deal with your individual needs. Our On-Demand service provides you with a cost efficient way to dip you toe into the water. Once business value has been established you have a clear route to providing a more comprehensive and tailored experience.

Case Study - Resource auction

The University of Illinois approached Red2 to provide a means of streamlining the process of resource allocation and sharing. The development enables departments to work together and collaborate in finding the optimum use of available skills. The system is suitable for all enterprise level businesses and is both cost effective and low friction.

This implementation of Red2 Auction demonstrates how the Red2 Auction product can be customized to meet the differing needs of clients using our standard framework.

The requirements included;