The first electronic auction was held in 1995 and today e-Auctions are an essential part of the procurement process. E-Auctions save time and money, ensure transparency, help to make the right decisions and strengthen relationships with suppliers.
Benefits for the Procurement Department
- Direct Savings: e-Auctions are the best tool in e-Procurement to achieve direct savings. The average savings range between 3% and 15% (compared to the tender price), but sometimes savings can be even bigger. Limited time and direct competition between bidders contribute to the fact that suppliers tend to lower their prices more than during classic tenders.
- Importance of Procurement: e-Auctions are traditionally supported by the Company Management because savings directly increase the company’s profit, which indirectly increases the importance of the Procurement Department.
- Professional Advancement: e-Auctions Software is a nice tool but professional experience and good preparation can make the difference between e-Auction success and failure. This experience can be valuable for your professional advancement and success.
Benefits for Bidders
- 100% Transparent: Everything about e-Auctions is 100% transparent, so this tool increases trust between buyer and supplier.
- Immediately Visible Results: After an auction is completed the results are immediately visible and the winner is the bidder with the lowest price.
- Gain Competitive Insight: Price information gained directly from your competitors encourages suppliers to improve the quality of their goods and services.
