e-Auction Reverse Auction e-Negotiation
The ARCUS price negotiation service (variously known as e-Auction, Reverse Auction or e-Negotiation) is used by procurement teams to make significant savings in the purchase of a wide variety of goods and services. The key ingredients for a successful reverse auction are clearly defined requirements and a competitive market.
Our service covers all aspects of auction planning and management, including advice on
category selection, auction rules and strategy, supplier liaison and
training, event management, technical and help-line support and
results evaluation. Coupled with our extensive experience of managing and running reverse auctions, the ARCUS eAuction system has been developed, through thousands of auctions, to deliver optimum results at minimum risk to our clients.
Highly suited to a series of 'proof of concept' pilot auctions, financial commitment and risk is low. Average savings have shown to be in the order of 14% against expected purchase costs.
The service is provided at a fixed fee irrespective of the value of the contracts being let or
tendered for. These factors increase supplier confidence and their
willingness to participate. ARCUS e-Auctions are designed to provide a price
benefit for customers and a secure and transparent place for suppliers to bid.
The service is delivered using cloud based technology that does not require IT
implementation by you or the suppliers. Business disruption is minimal as
the service is designed as a tactical offering that can be
integrated into almost any procurement environment.
According to our clients, we are a highly professional organisation with an excellent reputation. We'd love to hear from you, so please call us to discuss the suitability of e-Auctions for your organisation.
Benefits of Reverse Auctions
- Lower Purchase Costs - Head-to-head bidding intensifies competition between suppliers, resulting in buyers achieving the optimum purchase costs.
- Beat Target Savings - Traditional negotiations usually conclude once target savings are reached. e-Negotiations usually conclude only when each supplier reaches their bottom line. The 'Market' determines the price.
- Time Savings - reduces negotiation period from days or weeks down to minutes or hours.
- Deadline driven - Scheduled and announced negotiation date drives process to always meet deadlines.
- Probity - The buyer is simply an observer during the negotiation. Also, a permanent record is kept of every part of the price negotiation.
- Transparency - Increases transparency for suppliers as they all have exactly the same information at the same time.
- Measurability - Tangible and measurable results for the buyer to demonstrate savings.
- Flexibility - any well specified product or service can be auctioned: goods for resale,
services, core raw materials, hire and maintenance contracts, secondary materials such as packaging, or indirect company supplies.
- Additional suppliers - Time saving allows buyers to include many more suppliers in the negotiation process