Reverse Auctions: The Way Everyone Wins. It’s a big statement, but it’s true. Reverse auctions help organizations successfully realize cost-savings without sacrificing quality and supplier relations. For years, they have been a vital piece of the strategic sourcing suite. Despite this, many enterprises have yet to use reverse auctions to their greatest potential.
To learn more about reverse auctions — how they’re being employed, what sourcing professionals think about them, etc. — we surveyed over 100 sourcing, procurement, and finance professionals from around the world. After compiling their experiences and opinions, we emerged with several conclusions about reverse auctions — some that surprised us (95% of respondents aged 30-44 are using reverse auctions), others that just confirmed our belief that using reverse auctions in the right category drives better business value (firms can enjoy savings exceeding 20% when they use reverse auctions).
Want to learn more? Check out our white paper! We’ve shared some key takeaways below:
- Adoption of reverse auctions is rising. They’re most popular among A) large enterprises, both public and private, and B) Millennials and younger GenXers.
- Reverse auctions make a bottom-line impact across the enterprise through their ability to increase the efficiency and efficiency of the sourcing department.
- Enterprises that successfully run reverse auctions prioritize high quality for a good price, rather than automatically awarding to the lowest bidder.
- Successful reverse auctions are run in a buyer’s market to source commodities, simple services, and other items with a low cost of changing.
- Collaboration and transparency — two keys factors that contribute to a successful reverse auction — can only be achieved by running the auction through technology that adequately supports it.
Get the full story in our white paper — and get a great visual with our infographic!