Why Auctions Work?: Insights - and "Game, Set, Match-level Evidence" - from a Market Leader

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Here's a fantastic three-part article, written by Beverly Dunn of Ariba. It is part of their "Knowledge Nugget" series, but this is not a McNugget by any means - it's prime stuff! Whether you are in procurement for your organization or government agency or you are on the supplier side of the fence, this three-part series is a must-read (and a must share). Grab a cup of coffee and read all three parts by clicking on the links below:




Part 1: http://exchange.ariba.com/community/solutions/sourcing/blog/2010/09/13/ariba-knowledge-nuggets-ariba-sourcing-why-auctions-work-1-of-3

Part 2: http://exchange.ariba.com/community/solutions/sourcing/blog/2010/09/13/ariba-knowledge-nuggets-ariba-sourcing--why-auctions-work-2-of-3

Part 3: http://exchange.ariba.com/community/solutions/sourcing/blog/2010/09/13/ariba-knowledge-nuggets-ariba-sourcing--why-auctions-work-3-of-3

Great information from Beverly, based on Ariba's decade of experience and data. Hey, you can't argue with the proof she offered from an analysis of ten years worth of reverse auction experience:

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The Savings Proof is in the Pudding

Auctions drive incremental savings of five to seven percent on average versus RFP alone 10 years of Ariba data shows that:

• Our customers historically average 17 percent savings using eSourcing practices that include auctions
• Auctions drive incremental savings of three to four percent from incumbent suppliers over RFP
• Reductions in the cost of products/ services go straight to bottom line
• Has a significant impact on organizational health
• Reduced cycle times for resourcing activities (up to 90%)

*Data based on all Ariba-managed sourcing projects run on Ariba software

"Game, Set, Match" for reverse auctions? Why not get moving on this today to produce significant savings in the procurement area for your company, your agency, your hospital - any organization? Contact us here at the Reverse Auction Research Center: http://reverseauctionresearch.blogspot.com/ to get started.

David

From the Reverse Auction Research Center: http://reverseauctionresearch.blogspot.com/
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