E-Auction Is The Future Of Smart Sourcing

Upgrading is at the heart of constant evolution and growth for businesses. E-Auction is one such aspect that can help you level up your current sourcing processes. Traditional sourcing is not only time and cost exhaustive but also excessively manual.

E-Auction comes as a simple digital solution that makes the sourcing process transparent and faster than ever. It offers maximum price compression, effective vendor management, overall improved efficiency and significant cost and time savings.

Accessibility of strong B2B platforms like www.eAuctioneer.in makes the transition to e-auction easier. Let’s break down how real-time online bidding simplifies sourcing and arms you up to get started right away.

Understanding E-Auction & Reverse Auctions

EAuction transports the entire sourcing ecosystem online. With this, manufacturers, suppliers, or vendors can connect with buyers online. When the rates offered by various vendors are transparent, competition increases, and so does the motivation to give a better offer than the rest.

Reverse Auction is the most commonly used method of E-Auction. It works opposite to traditional auctioning, where sellers place a product/service for sale, and buyers bid the highest price - hence, “reverse”.

To reverse auction, you put out your requirement with specifications, terms, and your reserve price for the purchase. This requirement is shared with relevant sellers who make then make a bid.

Competitor vendors see bids. It means they get to tailor their offer to be better than the ones you have already received. Upon completion, you can choose to go ahead with the bidder who can meet your requirements.

Benefits of Choosing E-Auction

While price discovery and ease of use are the most important benefits of opting for eAuction, they’re not all. Let’s go over the other advantages of choosing online bidding that highly streamline your sourcing process.

    1. Brings Transparency in the Sourcing Process‍

As a business owner or buyer, transparently operating your sourcing can help you set fit criteria for vendor selection and add factual reasoning to your decision of choosing a vendor. This transparency can ease the stress of delegating sourcing responsibly.

Conducting sourcing by eAuction, even partially, allows you to get better at vendor assessment and vendor management in general.

    2. Fast Track the Journey from RFQ (Request For Quotation) to Vendor Finalizing

Traditional price discovery methods can be time-consuming and labour-intensive. Online auctions let you receive quotes from more vendors than you can by conversing with each individually. You also get to set deadlines and close on a deal upon completion.

Real-time eAuction makes way for real-time assessment and quick decision-making, saving you time and money. Accenture research noted that automation helped reduce invoice processing time by 72% for procurement teams.

    3. Avoid Human Bias During Decision Making

A practical decision like choosing a vendor needs to rely solely on merit and numbers. However, whenever humans interact, there is a tendency for emotions to make their way. It leaves scope for manipulation or bias to come in the way of choosing the best vendor.

When you choose eAuction, you take away all other factors and leave only pure facts. Make more thought-through decisions that are unaffected by irrelevant aspects of human interaction.

     4. Do Away with Excessive Internal Coordination

Internal coordination can sometimes be the most time-consuming aspect of choosing a vendor. The loops of back and forth, approvals and disapprovals, not only bide time but also weaken your negotiating power.

With eAuction, you predefine the criteria for your awarding process when creating your RFQ. There is, hence, little to no need for internal back and forth when making the final decision.

     5. Digitize & Streamline Vendor Management

EAuction lets you relocate your scattered offline vendors to an online platform. Their data, quotations, details of previous transactions, invoicing, etc., are stored online to be accessed easily and in one place, bringing in ease of operations.

Digitising your suppliers can also help them upgrade from their manual techniques and explore the many benefits of participating in online bids.

While we understand that there may be comfort in following the traditional system, the benefits of online auctions certainly outweigh the discomfort of a learning curve.

Conclusion

EAuction has the potential to transform how you source. Creating a competitive environment through reverse auctions can bring you the best cost compression and help you save on time and effort.

Partnering with a B2B platform like Select eAuctioneer Pvt. Ltd. expands the purview of what you can achieve by sourcing online. Simplify price discovery and avoid price volatility while skipping on all the hassle of manual methods, so you can have the peace of mind you deserve!