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

Image via Wikipedia

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:

__________________________________________________________________________________________

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/
++++++++++++++++++++++++++++

Related articles by Zemanta

• Virtual Reverse Auctions: How They Could Revolutionize World of Warcraft and Other Virtual Worlds (And Maybe Even The Real One, Too!) (bizcovering.com)
• Millions Today, Billions Tomorrow: A Report on Reverse Auction Implementation at The Department of Health and Human Services (socyberty.com)
• Why Not Everything?: Why Comprehensive Auctioning May be The Best Strategy for Using Reverse Auctions in Your Procurement Operations (bizcovering.com)
• Becoming Green and Saving Green in The Process: Using Reverse Auctions to Allocate Billions in Funding for Renewable Energy Projects (socyberty.com)
• Reverse Auctions: Are They Well-suited for Procuring Telecom Services? (socyberty.com)
• Top Ten Management on Key Success Factors: An Overview of Practices That Lead to a Successful Business (bizcovering.com)
• Top Ten Management on Strategic Planning: An Overview of How to Set The Direction for a Company and The Benefits of Doing So (bizcovering.com)
• Top Ten Management on Driving Forces in International Business: An Overview of What's Driving Your Business (bizcovering.com)
• Better Than The Priceline Negotiator: A Reverse Auction Model for Travel (trifter.com)

++++++++++++++++++++++

Reverse Auctions Produce Significant Savings for the Federal Government on Energy Procurements

Want to save money on energy contracts and increase transparency in the process? This is the promise of reverse auctions in energy procurement - a topic we've been following closely here at The Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/). Our friend, Chris Dorobek has conducted an interesting interview on the subject with Richard Domaleski, who is the CEO of World Energy. You can listen to the full interview at the link below:

Federal News Radio 1500 AM: Reverse auctions help agencies with transparency

Very interesting times in the energy field, as the interests of governments - at all levels - to save money is spurring intense interest in procuring the ultimate commodity (electricity) through reverse auctions to produce significant budgetary savings.

David

++++++++++++++++++++++++++++++++++++++++

Related articles by Zemanta

• Why Not Everything?: Why Comprehensive Auctioning May be The Best Strategy for Using Reverse Auctions in Your Procurement Operations (bizcovering.com)
• Reverse Auctions: Are They Well-suited for Procuring Telecom Services? (socyberty.com)
• Mulching for Dollars: Reverse Auctions Provide Savings Beyond The Garden Variety (bizcovering.com)
• Millions Today, Billions Tomorrow: A Report on Reverse Auction Implementation at The Department of Health and Human Services (socyberty.com)
• Becoming Green and Saving Green in The Process: Using Reverse Auctions to Allocate Billions in Funding for Renewable Energy Projects (socyberty.com)
• When Reverse Auctions Come Up Against "The Machine" in State of Illinois (spendmatters.com)
• Illinois Reverse Auctions Redux -- When Journalists Selectively Quote to Skew Stories (spendmatters.com)
• Virtual Reverse Auctions: How They Could Revolutionize World of Warcraft and Other Virtual Worlds (And Maybe Even The Real One, Too!) (bizcovering.com)
• How to Revolutionize Governmental Buying: The Customs and Border Protection Service Blazes The Way in The Federal Sector with Reverse Auction Buying (bizcovering.com)

++++++++++++++++++++++