Our Products and Services
Reverse Auctions
The Trade Interchange price negotiation service (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 fifth iteration, we have developed our own in-house software platform over the past 6 years and 1,000 auctions to include many features designed to deliver optimum auction results 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 auctions 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. 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 Reverse Auctions
- Lower Purchase Costs - Head-to-head bidding intensifies competition between suppliers, resulting in buyers achieving the optimum purchase costs.
- Time Savings - reduces negotiation period from days or weeks down to minutes or hours.
- 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, core raw materials, hire and maintenance contracts, secondary materials such as packaging, or indirect company supplies.
- Additional suppliers – Time saving allows buyers to include many more suppliers in the negotiation process
