Why Wouldn't You??!
We started eTrade Procurement so we could offer New Zealand businesses an easy, minimal investment, digital solution to realise great savings through online negotiations.
A bit of background...
In today’s fast-moving, increasingly remote working market, procurement teams need better, more interactive online tools to source effectively, and drive participation with geographically dispersed suppliers (who might also be working from home).
Our reverse auction technology:
- Enables flexibility
- Empowers suppliers to compete in a fair, transparent way
- Creates live, collaborative negotiations
- Highlights the value of incumbent suppliers and challengers alike
- Improves speed and visibility of the market
Reverse auctions are not one size fits all. While they are an important addition to your toolkit, buyers need to be strategic about when to use them, and when to use other negotiation tactics and processes. Reverse auctions can streamline the purchasing of low-cost, low-risk goods and services. By using eTrade Procurement auctions in this type of situation, it allows your team to devote more of their time to higher value-add, strategic initiatives.
Reverse auctions are effective, for example, in a buyer’s market, to source commodities, simple services, and other items that are easily substituted.
Here we share some of our real-world examples that demonstrate why eTrade Procurement should be part of your procurement toolbox too!
eTrade Procurement Case Studies
Over 50% saving on packing tape
This customer saved 59% through using eTrade Procurement to negotiate the price of packing tape. They achieved this great result because they had three interested suppliers who were keen to see how the market would price the product. The fully transparent open reverse auction enabled this beautifully. There were over 20 bids placed before they settled on the final price.
26% saving on signage material
Our customer needed signage material for a marketing campaign. They wanted to test the market in an open, transparent, and fair way to ensure they were getting the best price.
All vendors had the same information, so were on the same page, and could plan accordingly before the auction when ahead. Four suppliers felt they could be competitive and accepted the invitation to be part of the online negotiation. As a result, the negotiation attracted 47 bids (from two suppliers in particular) and our customer was more than satisfied with the over 26% saving they achieved, all complete within thirty-five minutes.
5% saving on packaging in 35 minutes
We had been working with one client preparing for an auction on a price-driven packaging item, where demand is currently higher than availability. They did not want to commit a lot of their buyers’ resource to the negotiation, as they had other strategic negotiations to focus their attention on but wanted to make sure they were getting a fair price.
The interested suppliers responded to the RFP, the auction went ahead, and our customer was more than satisfied with the over 5% saving they easily achieved in 35 minutes.
6.5% saving on food processing packaging
We helped another one of our clients in the food processing sector to successfully negotiate a new contract for a bundle of products it uses for packaging. Our platform made it easy for them to reach out to three new suppliers, as well as their current supplier, and agree on a new price.
The saving of over 6.5% was welcomed by our customer, and sets them up nicely to work with their supplier over the next 12 months.
8% saving on café and cleaning products
One customer held back-to-back auctions as the product lines could be supplied by the same set of vendors. Given the different categories of products (café and cleaning) and the negotiations they wanted to have with the market, the customer used two different types of eTrade Procurement auction. This worked really well, as they successfully negotiated a new contract and achieved savings of over 8% for both products.
Another customer found our platform to be a really easy way to build expectations into the negotiation through being able to signal the starting price before the auction has even started. This transparency allows interested suppliers to see what the buyer’s expectations for the contract are, and all suppliers have the same information, meaning they can plan accordingly.
So why wouldn’t you try it?
We’d love to spend some time with you to work through how eTrade Procurement can help your business through this tough economic climate. As some of our other blogs show (eTrade Blog/how-businesses-recover), it’s important for businesses to have an assortment of tools in their business toolkit to navigate through this. eTrade Procurement can help your team work remotely, have open and transparent negotiations with your suppliers and save you time and money.
Contact us on firstname.lastname@example.org to find out how eTrade can work for you.