| e-Negotiation |
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| e-Negotiations or e-Auctions help you achieve true market value for
goods and services through open and competitive online negotiations. |
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Using e-Negotiation & e-Auction to Increase Your Choices
During a traditional quotation or sealed bid process some suppliers come in so far off the mark that they exclude themselves from further consideration. The following bid chart for epidural packs highlights the opportunity for suppliers to put themselves in a better position through the identification of true market price as they hunt for the lead.
The opening bids are the result of a traditional quotation process. As can be seen, the ultimate result of this auction made only a very minor price improvement when compared with yellow's pre-auction offer. However, whereas prior to the auction yellow was the only game in town, by the end of the 30 minute exercise there were 3 suppliers within a very tight range. This common effect of clustering around true market price gives the buying organisation greater flexibility and more choice with less need to compromise on the qualitative aspects of the contract
ARCUS e-Negotiation
Video Demo
Click on the image below to see a video demonstration of the ARCUS e-Negotiation system.
Guess Again
e-Auctions effectively allow for an infinite number of bid re-submissions by suppliers in an open and competitive environment, at a relatively low overhead cost. This turns the concept of a 'true market price' into a reality...
Source: What are e-Auctions... and how to get started
True Market Price
While theoretically impossible to determine, a useful definition of 'True Market Price' for the procurement function is the best price achievable for this supply with this group of suppliers at this moment in time.