Investigating the benefits of eAuctions

A common mistake when implementing is to regard it as a transactional tool but to get the best possible results a clear strategy must be communicated and demonstrated to suppliers. Mechanisms during the eAuction process and award criteria need to be a priority during any process.

The benefits of implementing an eAuction strategy are clear. Mckinsey state that utilising eAuction technology along with a clear delivery strategy results in average savings of 15%-21%. Whilst in the current inflationary market this may be a challenge the technology still provides a distinct benefit Vs traditional negotiation methodology. There is a correlation between market inflation & Marco conditions such as recessions traditionally see an in crease in eAuction adoption.

The benefits of eAuction adoption is that it a fundamental platform to market price discovery and a tool that is essential to establish market pricing in an inflationary market. Not only this but the benefits of eAuctions act to counteract the negative effects of a general macro downturn. Procurement & Buying is as much of a profit centre as Sales.

Adopting eAuction technology has multiple supplier benefits. Its a transparent process for suppliers, all parties get the same information at the same time. It is also a platform that can often take historical relationships away as a factor. This therefore means new entrants have increased potential to win incremental business.

To discuss contact The Vision Chain @ www.TheVisionChain.com or email Phil@TheVisionChain.com