|e-Negotiations or e-Auctions help you achieve true market value for
goods and services through open and competitive online negotiations.
e-Negotiation e-Auction Reverse Auction
The Trade Interchange price
negotiation service (e-Negotiation, e-Auction or Reverse Auction) is used by buyers to make
significant savings in the purchase of a wide variety of goods and
services, where the contract requirements can be clearly defined and
where there is healthy competition amongst the suppliers.
Our service covers all aspects of auction planning and management, including advice on
supply selection, auction rules and strategy, supplier liaison and
training, event management, technical and help-line support and
results evaluation. Currently in its seventh iteration, the ARCUSTM software platform has developed over the past 10+ years
through thousands of negotiations to include many features designed to deliver
optimum results at minimum risk to our clients.
Trade Interchange (TI) is engaged by the buying
organisation for the purpose of running an event but is otherwise an
active third party to the bidding process. TI provides a fixed fee
service irrespective of the value of the contracts being let or
tendered for. These factors increase supplier confidence and their
willingness to participate. TI negotiations should provide a price
benefit for its customers and a secure and transparent place for
suppliers to bid.
The TI service offering
represents a relatively low risk undertaking. The service is
delivered using internet based technology that does not require IT
implementation by the customer or suppliers. Business disruption is minimal as
the service is designed as a tactical offering that can be
incorporated into almost any procurement environment. This offering
is also highly suitable for piloting, again minimising risk.
From a financial
perspective, customer commitment is low with fixed fees being
charged on a per auction basis. Average savings per auction have
shown to be in the order of 14% ranging to over 50% in some cases.
Benefits of e-Negotiations
- Lower Purchase Costs - Head-to-head bidding intensifies competition between suppliers, resulting in buyers achieving the optimum purchase costs.
- Beat Target Savings - Traditional negotiations usually conclude once target savings are reached. e-Negotiations usually conclude only when each supplier reaches their bottom line. The 'Market' determines the price.
- Time Savings - reduces negotiation period from days or weeks down to minutes or hours.
- Deadline driven - Scheduled and announced negotiation date drives process to always meet deadlines.
- Probity - The buyer is simply an observer during the negotiation. Also, a permanent record is kept of every part of the price negotiation.
- Transparency - Increases transparency for suppliers as they all have exactly the same information at the same time.
- Measurability - Tangible and measurable results for the buyer to demonstrate savings.
- Flexibility - any well specified product or service can be auctioned: goods for resale,
services, core raw materials, hire and maintenance contracts, secondary materials such as packaging, or indirect company supplies.
- Additional suppliers â€“ Time saving allows buyers to include many more suppliers in the negotiation process