Reverse Auctions (advanced)

Advanced Reverse Auctions provide far more capability to extract maximum value, and thus additional savings, from an eSourcing event over a conventional Reverse Auction.

Advanced Reverse Auctions tend to be appropriate where there is a high degree of complexity which may include several suppliers with numerous lots/ groupings of products or services. Key features include:

• An analytical ability to identify the optimum cost effective
sourcing strategy by selecting the most competitive vendor for each lot and line item. This often leads to additional savings of 7-8%

• To have multiple line items and lots within a single event

• Enhanced graphical and data capability to explore the numerous potential supply alternatives

• The ability to add in switching costs to the equation for changing potential supply sources

• The capability to include data from an integrated Supplier Performance Management suite and to apply costs for different
levels of performance