Buyers- Use a disciplined approach when preparing the RFP. Scope, requirements and decision criteria must be clear and well-defined to create a level playing field for bidders.
- Draw on all available expertise when preparing for the auction, including your auction services provider. For example, Pantellos provides market intelligence to help you time your auction most advantageously, as well as deep experience in sourcing a variety of commodities.
- Be open-minded. There’s more auctionable spend in your business than you think.
- Encourage your supply chain staff to use auctions. Let them know it’s okay—in fact, expected—to obtain better pricing through auctions than they’ve achieved with traditional sourcing methods.
|
Suppliers- Prepare your bidding strategy before the event. Understand the buyer’s decision criteria to determine how they affect your bidding strategy.
- Have a clear understanding of the requirements (e.g., quality expectations, delivery).
- Make certain the scope and specifications are clear and requirements are well-defined. A level playing field is essential to create a fair, ethical auction process.
- Establish your “walk-away” price before the event, and stick to it.
- Make sure a final decision maker is available during the auction.
- Recognize that you cannot win if you don’t participate! You could win an auction even if you submit only one bid. At minimum, you will position yourself for future bidding opportunities.
|
