Amphire has been running highly successful e-auctions since May 2004. Since then, they have increased in frequency and size of contract, as clients have enjoyed the many benefits of this method of negotiating a supply agreement.
On-line auctions create a transparent environment, where potential suppliers are invited on behalf of the customer to bid for the business against the specific criteria. It’s a fast, reliable, cost-effective and decisive method of agreeing deals for both buyers and sellers.
Once a decision is made to progress with a particular item, Amphire develops a Request For Information (RFI) which is emailed to suppliers. These RFIs enable the buyer to decide which suppliers they would like to bid for the business quickly and easily, as all supplier information is held electronically against the original criteria.
A trial e-auction is run prior to a live event to give suppliers the opportunity to familiarize themselves with the procedure by practicing messaging and bidding. Timings for live events can vary, with a typical auction taking 1-1.5 hours, although as little as 45 minutes and up to 2.5 hours have been recorded. During the event, telephone communication is avoided as an audit trail is needed for reference if a supplier is excluded from the auction. Once the auction has been successfully completed, a full feedback report based on the bidding during the event, is prepared for the buyer to review.
What do clients gain?
As one client explains, “E-auctions really set a precedent for future achievements that can be gained from running these events. The ease with which we can benchmark many suitable suppliers for a specific piece of business against our criteria, saves us a huge amount of time and administrative costs. The savings achieved here were staggering and the whole process of assessing suppliers has been simplified. The savings in time and energy from moving the process online means that we can potentially manage more and more contracts far more effectively. This can only mean greater savings in the long term”.