The companies that use eAuctions can get even more savings and also the return on investment in eSourcing is higher. In many cases the improving of purchasing activity begins with centralizing the purchasing, which is a good starting point for implementing also the most efficient way of negotiating - eAuctions.

Using eAuctions enables companies to conduct thorough sourcing projects. In the eAuctions it is never only about the price, also all the other elements will be evaluated and taken into account.

When the following criteria is met, there is potential for a successful eAuction: Clear Specifications, Enticing Volume and Competition. With a large supplier base and excess supplier capacity in the market, it can be expected that the suppliers are interested in the eAuctioned volume.

When a company is conducting its first eAuction projects it is recommended to start with the products or services that have clear specifications. Normally these are low-tech, commodity-type items. As the eAuctioning becomes a part of buyers’ everyday life and there is more experience on different kinds of auctions, even very complex products and services can be eAuctioned.

One way to analyse the potential for eAuction is also to take a closer look at the pricing development. When there are stable market conditions and low price volatility, the eAuction result will be better.

Also when the market price for a raw material has decreased, it is highly recommended to conduct an eAuction project to get the current market price. It is quite rare that the suppliers suggest full price reductions based on decreasing raw material prices. On the other hand also in the situations where there are real pressures from the suppliers to increase the prices, using eAuctions will help the buyer to get the best possible market price.

Noventia’s eSourcing software has been developed based on real user experience. All of our consultants have a long background in both traditional negotiations and eSourcing. This is something our customers find very valuable, as we understand the issues and problems that buyers face in their everyday work. All that we do aims at easing buyers’ everyday life. Therefore in our opinion also the software must answer to the needs of the buyer, not the other way around. The main idea is, that the buyers can conduct the process as they traditionally would, only the software makes it easier and helps to create savings both in time and money. Noventia’s eSourcing software can also be adjusted according to the customers need as there are different needs in different business areas.

eAuctions increase transparency, comparability and efficiency. This also gives all the potential suppliers an equal opportunity to participate. Having all the qualified suppliers focused on giving their quotes simultaneously will help the buyer to achieve the best market price and the biggest savings.