The use of reverse auctions in business frequently asked questions
In business the use of online e-sourcing tools such as e-tenders and e-auctions is becoming commonly used to help buyers achieve rapid cost reduction. In this scenario suppliers are invited to bid for the buyers contracts either by submitting their tender online and/or participating in a reverse auction.
Cost savings can be considerable on average 14% and lead times for sourcing projects reduced by up to 70%.
Below are the most frequently asked questions about e-sourcing from business users:
What is e-Sourcing?
e-Sourcing is the use of internet technology used by purchasing professionals to find suppliers and negotiate prices for a wide range of goods and services. This typically includes activities such as supply market analysis, e- tendering, price negotiations (e-auctions) and contract management.
What are the benefits of using e-Sourcing versus standard purchasing techniques?
Traditionally buyers send out tenders listing the purchasing requirements and invite suppliers to submit prices. This normal takes weeks for all the proposals to arrive...