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What
are Auctions?
This section specifically looks at the ability to use REVERSE
auctions to BUY goods or services from
suppliers. For more general information click here.
What
is a Reverse Auction?
Most organisations and companies use some form of tender process
in order to purchase goods or services. This may not necessarily
be a formal tender process, and in some cases may not even look
like a process at all. However whether we consciously acknowledge
this or not there is most definitely a decision making process when
we buy goods and services from suppliers.
This process of selecting a supplier to provide goods and services
is called many things including:
Request for Quote (RFQ)
Request for Price (RFP)
Request for Information (RFI)
Tender
Brief
A REVERSE AUCTION in its simplest explanation is moving this traditional
paper based buying process online. The BUYER creates a REVERSE
AUCTION, or e-RFQ, giving details
of the goods and services they wish to buy and then invites a number
of suppliers to bid for the business. Typically the organisation
that gives the lowest bid gets the business.
What
are the main benefits of a Reverse Auction?
For the BUYER the main benefits are
- Faster
Sourcing Process.
- Faster
Results.
- Bidder
negotiations are fast and simple, with cycle times reductions
of up to 70%.
- All
bidders can be treated fairly and at the same time, reducing
the need for multiple meetings and conversations. Reducing weeks
or months of negotiations down to, potentially, hours.
- Multi-currency
and multi-lingual capabilities collapse potential geographical
boundaries.
- Virtually
no limit to what goods or services can be bought.
- Simple
and easy to use ensuring buyers can run their own auctions without
the need for specialist help.
- Buyers
can either run simple multi line auctions or more complex auctions
- Multi
Variable Bidding (MVB) enables other factors such as support
and delivery to be included in the decision making process,
moving away from price and quantity..
For
the SELLER the main benefits are:
- More
efficient way of handling tenders.
- Constant
and up to date information on where bidders are in relation
to their competition.
- Openness
to information leads to level playing field.
- Reduction
of cost in response to tenders.
- Multi-currency
and multi-lingual capabilities collapse potential geographical
boundaries.
- Inclusion
into bids from companies who have not previously bought from
the supplier.
Key
Functionality
- Software
is hosted and is accessed via the Internet using a browser.
- Easy
to set up auctions.
- Easy
to bid on auctions.
- Online
help and powerful wizards.
- Fully
controllable administration allowing for easy selection of bidders
and winners.
- Powerful
event monitoring through dashboard like interface and extensive
reports.
- Multiple
auction/bidding event formats, types and rules.
- Multi-Variable
Bidding (MVB) - beyond price and quantity.
- Multiple
Language Support.
- Multiple
Time Zone support.
- Highest
level of security.
A
couple of scenarios where Reverse Auctions could be used.
Travel: A holiday company is looking to lease a number of
747-200's to offer package holidays, as well as the aircraft they
are looking at all the support services such as in-flight food providers,
air crew uniforms and repainting of aircraft with new livery.
Mobile Telephones: A multi national corporations mobile phone
contract for its engineers is coming up for renewal they know that
they need 10 million minutes of incountry airtime.
Both scenarios would benefit from using a reverse auction to fulfill
their needs. The first is more complicated and may be set up using
Multi Variable Bidding. The second is really straight forward and
would consist of a reverse auction with a single line item.
How
do you use Reverse Auctions?
Take a look at the online
demonstration.
Is
there anything you can not buy?
I think we are more limited to our imagination and desire to make
a reverse auction work more than limited by what you can buy.
Can
I have my own branded Reverse Auction site?
Absolutely... provide us with your logo and we will brand your reverse
auctions
Can
I resell Reverse Auctions?
Sure if you would like to offer reverse auction capabilities to
your clients or your entire channel then we will help you. You will
also generate revenue by reselling reverse auctions
How much do Reverse Auctions cost to use?
To use reverse auctions costs a very small % of the total
monthly transactions. However the more you use the service the
less the %. This applies to the entire business not just your
own section or division. For example if the UK division of a company
bought £150,000 worth of goods and services and the USA
division bought $400,000 they would be added together and the
appropriate % charged. Thus providing the company with global
benefits.
Why
should I use RealStreetPrice.com Reverse Auctions?
Just a few reasons:-
- We
have existing relationships with over 260 of the worlds top
multi national corporations
- We
have offices around the globe
- Each
account is supported by an account team
- We
are 100% responsible for the service, its continual support
and development.
- There
is no cost unless you use the service to buy goods or services.
- Requests
for Information and non purchase auctions do not cost anything.
- To
set up Branded auctions is free
- We
provide extensive online help and training
- You
can generate additional revenue by reselling reverse auctions
- The
more you use Reverse Auctions the less you pay
- Reverse
auctions can be run by yourselves or you can ask for assistance
- Global
24x7 support
- Multi
lingual support
To
find out more please complete this form
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