Average Cost Savings of 14.36%*
In a 2006 eprocuement report, CAPS Research revealed that the average additional savings attributed to negotiations conducted through reverse auctions was 14.36%. This result was calculated from data submitted by 104 US organisations that had conducted a total of 9,568 reverse auctions*.
Bechtel, a USD$27Bn private engineering and construction firm states that the direct financial benefits from reverse auctions have averaged over 10%. Over 90% of Bechtel's reverse auctions have achieved savings from pre-auction budget. Bechtel also states that they that they get as good or better results, in less time, from reverse auctions, than from their best negotiators.*
Telefonica, one of the globe's largest telecommunications companies, is strategically committed to reverse auctions and e-sourcing. The CPO of Telefonica, Juan Carlos Dominguez, presented the following chart showing their results across 4,190 reverse auctions (e-auctions). The mauve line shows average additional savings of 10% -12% per year with forecast savings of 13% in 2007.
