eBID is a service which has been used for three years by one of our important customers and we would like to decrease your company expenses by using this solution. It is a solution providing an effective price negotiation tool by using eAuction during the bidding process. Internet connection and a standard Internet viewer are the only technical requirements to be met by the customer in order to employ eAuction. The rest of the technical support is provided by DATALOCK through outsourcing:
eAuction
Online eAuction and eSourcing
Reverse auction.
aAuction is an automatic, fast and effective price negotiation tool to be used during the bidding process. A purchaser organises an eAuction with the aim to award a selected product supply contract. During the auction, the group of invited suppliers (after the free registration and system login) submits firm bids. eAuction ends after a defined timeslot by designating the winner, i.e. supplier offering the lowest price. The purchaser, eAuction organiser, is not bound by the eAuction result therefore he has no obligation to sign automatically a contract with the winner.
By using the eAuction, a company can achieve real average savings of 10 - 25% of company expenditures onmaterials, goods and services purchases. Correct implementation within the company resources strategy and definition of materials, goods and services to be purchased are the important factors of eAuction success as a cost saving tool.
Effective eAuction employment requires:
A larger number of suppliers
The relationship with the supplier is not strategic
A standardised, homogenous product as the procurement entity
A low, maximum medium strategic importance of the procured goods (minimum at the beginning of the eAuction)
The price is one of the decisive factors
The purchases can be aggregated
Benchmarking to test the market
A sealed-bid auction - in case of expectation that the current purchasing price is lower than the market level
eAuction benefits
For the purchaser
Increase in the negotiation process and price discussioneffectiveness
Overall decrease of procurement costs
Purchase and procurement transparency
Own personnel workload decrease
Digestedly provided actual price and supplier market position information allowing to gain new, more advantageous suppliers
The service is advantageous also on the financial side since eBID can very effectively and quickly go through otherwise very time-consuming price negotiations.
For the supplier
Zero direct costs on participation in the auction
Possibility to compare with the competition and see his own market position
Bid selection transparency assured
Access to new customers
Speeding up and simplifying the participation in the bidding process
