Six Reasons Transparency is Crucial in Positive Negotiations
Smarter procurement is transparent procurement. At eTrade Procurement we believe that transparency is vital to how your business carries out its purchasing negotiations, and that our online auction is the tool to help you achieve it. www.etradeprocurement.com/what-is-an-online-auction/
Open competition is essential in the public and private sectors alike, and while the benefits of transparency for procurement in the public sector are obvious (best value for tax-payer dollars, and creation of business opportunity to name a couple), private sector leaders also identify transparency as a crucial component of best practice. Transparency and openness with market information means that all your suppliers and service providers know the nature and scope of your contract’s requirements, and all have equal access to your conditions, including evaluation criteria, technical specifications, procurement methods, and desired outcomes.
Prioritising transparency into procurement practices
Here are six reasons why we think you should prioritise transparency in your procurement practice:
- It is a cornerstone of best practice buying because it encourages value for money, open and effective competition, ethical dealings, accountability, integrity and equity.
- It takes the guess work out of negotiation as all parties have the same information
- Transparency creates trust with suppliers as they know exactly what you want, thereby can compete on an equal footing, as well as see outcomes if they have not been successful themselves.
- You achieve the best price as suppliers can compete like for like, creating a more competitive procurement process.
- Strategic and tactical decision-making is enhanced as buyers openly discuss their needs with current and potential suppliers.
- Suppliers want to be involved with an open and transparent business.
Transparency is good for suppliers
Therefore, it follows that transparency also makes good sense for suppliers:
- There are no surprises.
- Everyone is on the same page.
- Suppliers know what the market is doing, who is interested in the contract, as well as the final result.
- Interested parties are continually and actively involved in negotiations and don’t get side-lined.
- It discourages buyer favouritism, apathy, roll-over of stale contracts or laziness.
- There is increased trust in the market.
A business that operates with transparency as a core principal is a business that strives to undertake clear, honest and fair transactions. Fundamental aspects are collaboration, cooperation and collective decision-making. There is unrestricted communication and accountability, but also a lack of hidden agendas or conditions
Using an online auction to achieve transparency
We know, however, it can be hard to achieve this in all your business transactions, particularly high volume, tactical purchases. Conversations with one supplier might not translate word-for-word to another supplier, or any delay in providing information might negatively impact a supplier’s ability to consider your RFQ.
It’s of no doubt there will be challenges to gaining and maintaining transparency in your negotiations, but eTrade Procurement’s webapp auction platform has the answer (Introduction to eTrade Procurement Video). With our completely transparent, paperless negotiation process, and any of our reverse auction methods, whether they be ranked, open, sliding or tender auctions, both the purchaser and the vendor have timely access to a completely open, fair and transparent transaction. Reporting and analysis is integrated and simple to navigate, and because eTrade is mobile compatible, real time information is available at your fingertips. The entire process is simple, effective and accessible: eTrade Procurement Buyer Guide Video.
In summary, trust is a building block of any relationship, and transparency is a powerful strategic choice that helps facilitate confidence and agreement, as part of any negotiation process. eTrade Procurement brings you the technology to achieve greater business transparency in one easily navigable location. We believe you will find eTrade to be an indispensable addition to your procurement toolkit.
Contact Pete or Andrea today to find out how we can help.