Reverse & Soft Auctions
When suppliers compete on price, you win
In addition to sourcing and quoting, EC Sourcing Group offers many secondary negotiation options, including standard forward, reverse auctions, and soft auctions, which are a good alternative to the traditional reverse auction process.
Auctions and auction software ensure that you achieve true market pricing for any goods or services in the shortest time possible. As with all our solutions, our eAuction software procurement model is straightforward, robust, easy to set up, and can manage virtually any bid template need—from standard commodities to complex total cost of ownership formula-based purchases.
Our reverse auction software includes the powerful features you need and links seamlessly with our eRFx solution. Used in conjunction with tools such as our RFP management software, you can manage other aspects of procurement, and streamline your efficiency.
What Is the Benefit of Auction Software?
- Speed. When you use auction software, negotiation takes less than an hour—in some cases, 20 minutes with eSourcing. The increase in efficiency not only benefits you, but also the vendors that you’re working with, making auction software an exceptional idea for everyone—not just your team. It also increases market efficiency as a whole.
- Value. Savings are typically greater. On average, over the last two years, our clients have saved 17.6 percent with auction software. Any reduction in purchasing costs allow you to increase your ROI. While sometimes these boosts are temporary, if the process continues, so does the ROI.
- Fairness. eSourcing software offers full market transparency; all suppliers have the same information at exactly the same time.
Reverse Auction Case Study:
What Is a Soft Auction?
A soft auction is a web-based eRFx, followed by secondary bid rounds accompanied by tailored bid feedback provided to the suppliers. In many cases, the eRFx will include survey questions, and the secondary bid rounds may include fewer suppliers than the first round of bidding.
The bid feedback can be very specific or general and is viewed online by suppliers. The secondary bid rounds are performed in the same manner as the first bid round—online, using auction software and performed over the course of days or weeks as the project dictates.
What Are the Keys to Successful Online Reverse Auctions?
- Prepare thoroughly. Know your market. Know your suppliers and internal customers.
- Prepare a thorough RFI/survey to qualify all bidders.
- Establish good communication with suppliers. Clearly explain what your goals are (cost, value, etc.).
- Prepare a thorough, spec based pre-bid (unless the bid is a true commodity). Do this offline or use our eRFx solution to simplify and streamline the process. This step is crucial. It can help develop a better auction strategy or it can indicate to you that you should skip the auction.
- Allow the suppliers to view and play in the auction software before the auction starts. Make sure they are familiar with using the solution.
To learn more about the benefits of auction software, or to request an eTendering demo or other eAuction demonstration, contact EC Sourcing Group today at (973) 936-9672, option 1.
Soft Auction Case Study:
We selected EC Sourcing to facilitate our purchased services and capital equipment bidding processes. Since implementation over 4 years ago,we’ve had great success using the solution to generate savings and leverage the automated web-based platform to increase visibility and cross functional team participation, improve bid process cycle time and overall organization to provide a more formal straightforward bidding process. We have found the solution to be easy for all parties with high vendor participation. We have used the solution to negotiate small buys and extremely large capital purchases with success on all levels. Lastly, EC Sourcing Group has provided a high level of support both on technical matters and strategic sourcing strategy.
Your software is great! I have been involved in many of these (e-Sourcing negotiations) and in fact just finished one last week for Schering Plough. Your software is much less complicated and more user-friendly than any of the other ones I have used.
Schedule a Demo
Schedule a demo to see how we can help streamline and automate your sourcing process, increase spend under management and deliver measurable savings.