How e-Auction Make Money for Your Business?

Posted on by procurEngine
e-Auction Platform

If you want to make some extra money or start your business buying and selling, online auctions are a great place to start, and there are plenty of savvy sellers out there who have discovered they can turn a pretty profit through these marketplaces.

Of course, as online auctions grow in popularity, more people want to get in on the action to get a piece of the proverbial money pie, and there’s always room for more people to join the fray. The key to success is to recognise that making a profit through auctions is all about your work.

What Is An E-Auction?

E-auction software procurement is a conflict supplier process that provides a contract for the processes ion system. In the past, the manufacturing process meant that the supplier price dropped. In some cases, this may be a significant result, but it turned out that there are several problems when the minimum bid spreads. This means that the lowest bidder who has a contract has limited the growth capabilities of the enterprise and can be successful for the current service. Furthermore, this kind of economic compatibility felt its value was not satisfied. Therefore, in recent years, auctions have evolved from simply looking for the lowest prices to more comprehensive offerings that focus on all aspects of product delivery. However, this can make it difficult for businesses to determine which vendor to order from.

Also Read: 4-Steps to get Best Prices in e-Auctions

We give our four tips to create an improved Eratrice experience. 

Distinguishing between prices and value 

There is a contrast between service prices and service quality. If you just made a price, you may be bad for the quality of goods and services. This error can be handed over to your business customers received from worse quality. This result may be a lousy evaluation and a lousy reputation. How much do you want to revise the bad reputation to sacrifice your business costs? Cross Country Key is not a better business decision, but the more expensive supplier quality is high?

 Define requests and purposes 

One of the keys to success in any bid process is to know what you want to achieve. You may want a better price for your product and service, but you may want to increase the quality of the received product. It is essential that you need to document all the requirements that bidders have to meet them. It allows you to insert into the relevant pitch, and you can stop what you want to waste time you read the indecent proposal. If you take these goals, it is essential to evaluate the bidder’s bid.

Some may look good, but it is not necessary if they do not offer what they want. They will be disappointed with the final result. 

Invite RFI to open all potential suppliers. 

Do not stop the potential supplier from reacting to RFI. Not all new offers of goods and services must come from the current supplier. New suppliers may provide a variety of processes that can give good transactions. If you receive information from all potential suppliers, carefully remove the inappropriate supplier. This will make the next step for your company easier.

Follow-through 

It is always the best practice to ensure that you can quickly conclude negotiations and contract assignments. This cancels the conditions specified in the auction and eliminates the need to restart the process.

What is the future of e-Commerce?

Though it may appear that e-Commerce will reach market saturation shortly, analysts strongly disagree. E-Commerce continues to grow and is expected to expand exponentially in both B2C and B2B markets.

The continued development of e-Commerce platforms across horizontal and vertical markets is critical to growth. ABC has created and launched custom e-marketplaces, including forward and reverse online e-auctions, in energy, renewable fuels, retail, telecom, construction, and finance. Our e-auction software procurement may assist you, or your company is capitalising on a growing market that isn’t going away anytime soon. We have the best e bidding software, which will help you. 

Also Read: Best e-Auction Platform for Procurement Professionals

4-Steps to get Best Prices in e-Auctions

Posted on by procurEngine

– Anupam Aggrwal, Director AgileApt Solutions (procurEngine)

e-Auctions are one of the most effective ways to negotiate with suppliers. They get savings anywhere between 4-17%. Your e-Negotiation is a platform for your organizations to create faceless, un-biased negotiations resulting in best prices – always.

Not only this, e-Auctions also record a complete trail of the negotiations like who all were invited and participated in the negotiations, initial price, reduction trends and final price comparative etc and it is available for future audits.

However, organisations need to create an eco-system to get maximum benefits of the e-Auctions. Some of the key essentials to make e-Negotiations successful are as under:

1. Motivate and Encourage Suppliers Who Bid Aggressively in e-Auctions

It is most important that you promote the culture of aggressive bidding by suppliers during e-Negotiations. You can motivate their behaviour by some very simple steps like:   

  1. No Negotiations after e-Auctions
  2. Immediate PO/LOI
  3. Some rewarding term for contracts negotiated using e-Auctions

2. Reward employees Who Create Innovative e-Auctions

Our team members can do wonders by bringing creativity in e-Negotiations. It can as simple as using a combinatorial auction in place of itemized auctions or using Dutch Auctions in place of standard English Auctions or appropriate usage of λ-Factor etc.

The organization must reward employees who bring maximum value for the organisations. The employees can be rewarded by measuring:  

  1. Savings achieved using e-Auctions
  2. Purchase Orders placed on new vendors (e.g. Min 10% of total purchase on new vendors approved in current and last financial year)
  3. Best e-Negotiation Strategy
  4. Special weightage for e-Auctions

3. Quantify, Measure and Display Savings    

It is important to align all members of the Supply Chain in bringing this value. Common goal and its daily tracking help team to put a bit of extra effort in extracting more value from the e-Negotiations without by-passing the system.

4. Improve e-Negotiation Experience for Suppliers

Lastly, it is very important to take feedback of the suppliers on their experience of the e-Negotiations. Any constructive feedback must be recorded and corrective actions be taken to improve the suppliers experience. A good platform is an asset for the organizations’ long term growth strategy.

Ever thought about a smart e-Negotiation platform to improve your business profitability?

ProcurEngine is an advanced digital cloud based e-Negotiation platform hosted on Microsoft Azure. For more info, please click here.

6 – B2B Negotiations Trends to Watch in 2019-20

Posted on by procurEngine

– Anupam Aggrwal, Director AgileApt Solutions (procurEngine)

B2B Negotiations went through plenty of changes in the last few years with increased IT penetration in this field.  The advent of smart, intelligent and easy-to-use e-Negotiations platforms have already disrupted this arena, yet it is far from getting standardized again. Negotiation is expected to go through big changes now with the advent of Industry 4.0.

This article focuses on what Supply Chain Leaders can see Trends in Negotiation in this financial year 2019-20.  

1. Increased Focus on Comprehensive e-Negotiation

With the advent of high-speed internet reaching even the remotest places in India, many large and mid-sized organisations have already moved or started to move towards e-Negotiations in a big way. The e-Negotiation platforms are becoming more intelligent and smarter with increased usage. The e-Negotiations not only provide a fast and efficient tool for the negotiators ensuring good prices through intra-industry competition but also it creates organisations to see the cost and advantages to move towards low cost yet efficient substitutes.

e-Negotiations also helps organisations to record the entire process to avoid getting tags of being biased and for future audit purposes. Now the focus of the organisations will on combining AI and HI for a comprehensive outcome.

2. Data Analytics as a Negotiation Compulsion

The IT tools have impacted the early days of Negotiations and continue to impact it now. That doesn’t mean that everyone’s Negotiation is finished digitizing – far from it – but it does mean that even companies that are miles away from achieving Industry 4.0 operations are still collecting massive amounts of data.

In the coming year, we expect that it will become increasingly uncommon for that data to go unused. Where advanced prescriptive and predictive analytics were once considered luxuries, they will increasingly be seen as an indispensable part of administering a negotiation. Why? Because without them, the large caches of data that are routinely collected across the negotiation couldn’t be leveraged into value-added propositions like improved purchase cost and higher efficiency – two things that will be necessary for keeping companies competitive. 

3. Greater Acceleration of Product Lifecycles

Just as the new technology is changing the way that we do businesses, it’s also changing the way that organisations do negotiations with their vendors. The rise of digital infrastructure has given us the subsequent rise of e-commerce particularly in B2C space, which has changed and continues to change the way that customers learn about and ultimately purchase various products.

On similar lines in B2B, as customer expectations evolve, businesses have to evolve along with them. One of the most significant ways in which changing customer expectations is driving necessary operational change is the shortening of product lifecycles.

Manufacturers across multiple industries are discovering that new products and new innovations need to be turned over much more quickly than ever before, with many existing products now reaching obsolescence sooner than expected. This new reality requires a high degree of organisational flexibility and a much “sharper” value chain than many businesses are used to. Production plans have to be developed and implemented more quickly and demand needs to be estimated more precisely in order to account for the low likelihood that a large buffer stock will come in handy. In order to meet these new requirements, businesses are going to need smarter Negotiation planning and more intelligent processes, e.g. real-time demand tracking, “what-if” scenarios, etc.

This expects to put a lot of pressure on the entire negotiation to approval cycle. It will also mean that there are now previous price trends or the conventionally used LPP (last purchase price) for many items. The move has to be more on price – discoveries.

4. Focus on Cost Reduction

With many industries facing imminent global slow-down, there is expected to be a renewed focus on lowering the cost of production of offered products and services. This would mean the need for quicker and harsh negotiations. The vendors will also feel an increased threat of substitutes. Many organisations may form CFT to drive down the cost.  

In our e-Negotiation business also, we have seen many organisations who were paying huge amounts to e-Negotiations global platforms only because they use their ERP system, are evaluating the small yet reliable cloud-based e-Negotiation platform, whose subscription cost is just a fraction the large giants, yet offer lot more features, without any need of additional hardware or software.

5. Greater Vendor Segmentation and RM standardization

The Supply Chain heads of the future won’t be interested in customization of the products, raw-material, services it buys only to satisfy users. Rather, purchase standardization will be part of a broader strategy that includes ever more granular segmentation of vendor-bases. This will mean collecting data on your various vendors in order to segment them into different smaller groups so that you can be sure that your production and shipping workflows are specifically aiming to meet the needs of your organisation. 

In this way, businesses will be able to provide higher quality service and better adapt themselves to changing markets. As Negotiations changes and evolves, this will be one of the ways in which businesses can make sure that technological advances are being leveraged toward the ultimate goal of better providing for clients and customers. 

6. Visibility – A Virtual Compulsion

While we’re on the topic of increased customer requirements: services like Amazon have set the bar a lot higher for tracking and shipment visibility, and those expectations are shifting even among B2B customers. People increasingly expect to know when a given shipment has completed each stage of its journey, just as they expect delivery dates to hue extremely closely to advanced estimates. For companies to offer this level of visibility to their customers, they’ll increasingly need to bolster visibility within their own Negotiations, taking a much more granular approach to tracking each product as its transformed from raw materials into a finished good and subsequently shipped to its final destination. This will require digitization and the adoption of IT solutions that help connect disparate points on the value chain—things that may seem onerous. But it will also help to drive a number of intra-operational benefits, from reduced silos to increased collaboration.

Ever thought about a smart e-Negotiation platform to improve your business profitability?

ProcurEngine is an advanced digital cloud based e-Negotiation platform hosted on Microsoft Azure. For more info, please click here.