Organizations – small or large have shown keen interest in taking up Reverse eAuctions to drive down the cost of procurement and increase the overall effectiveness and efficiency of the purchase process. Procurement Heads, by and large, have had varied degrees of success with Reverse eAuctions much to the fact that it is not as easy as it may seem. However, we at C1 India, do not intend to make it further difficult for you to comprehend. Instead in this interesting blog we will highlight Top 5 Steps to ensuring Successful eProcurement Strategy.

1. Document. Document. Document.

What is clearly written is clearly understood. This is the first step to inviting right supplier participation. Spend time in clearly documenting requirements and review the final document before publishing it.

2. Whole Systems Thinking Approach

Don’t get carried away. It is important to factor in cost of switching. Yes, in case you do end up getting better-value deal from a new supplier, what would be the cost of switching over? Would it be a pain? Would it be easy? What impact will it have? What can you do to handle it? All these questions need to be answered well in time. If you feel confident and wish to go ahead with Reverse eAuctions, do not forget to screen the new vendors. Shortlist and move forward.

3. Strategy holds the Key

If you are experienced in eProcurement, you would appreciate how important lot structuring and selection of auction type is. However, if this is your first attempt to get onto Reverse eAuctions bandwagon, it is suggested that you consult a credible eProcurement organization. It will help you in planning the whole exercise and will share the industry best practices.

4. Monitor the event

Run a mock eAuction before the big event. Warm-up game post net practice is just as important. Finally, on the day of reverse eAuction, watch the event closely. Remove any erroneous bids placed.Also, as a buyer you should be sensitive to big rigging. Check out our interesting Blog – Bid Rigging: How to deal with it?

5. Communicate & Analyse

Encouraging tone of communication is always welcome, isn’t it? Make sure you congratulate all your bidders for making it to the event. You would want them every time you organize such an auction, right? It would also be great to reflect on – how much savings were you able to drive home, what was the improvement in TAT and how could you make it better the next time you run such an event. Request for detailed MIS reports from the eProcurement partner and analyse.

We hope you enjoyed reading this blog, Do keep coming back, and, we love when you comment. Download our highly recommended guide – 5 Steps to Successful e-Procurement Strategy.