It’s no secret that we love telco eAuctions for buying voice, mobile and data. We’ve built our business around helping customer’s run RFP’s and auctions in the cloud. Helping them find cost savings they wouldn’t have otherwise found. And making it happen fast.
The suppliers we work with love the eAuction process. It’s straightforward and gives great feedback to the suppliers that participate. But occasionally, a person will naively say that the old way is best and that they’re not going to play. What they’re not seeing then are the 5 reasons suppliers get addicted to eAuctions.
eAuctions are fast. Suppliers can expect a contracting decision within days of submitting an offer. Defined timelines, standard process, evaluation, and immediate price feedback, mean that eAuction negotiation processes are faster and more effective than traditional RFP approaches. Meaning suppliers spend less in the proposal process and so can invest more in their delivery of great services.
- Shorter negotiation times
eAuction cycle times are a lot less than traditional RFP processes. Buyers use their pre-populated service inventory’s and predefined templates when publishing their requirements. Improving accuracy and locking buyers into a realistic contracting cycle. Because suppliers get a standard RFP format and milestone timings they come to understand and trust the eAuction process. Rather than the usual smoky bar that RFP negotiations feel they’re being negotiated in. With eAuctions, suppliers know how a contracting decision will be made and when it will be finalised.
- Better price feedback
eAuction’s give their price feedback online and in real-time. Giving suppliers an immediate view of their pricing performance and likely success of their offers. eAuctions give suppliers a real indication of market prices and the ability to create benchmarks. Traditional auctions in property and antiques have a reputation of being efficient at discovering where the market is. But the internet has moved them out of the front yard and into more complicated markets like telecoms. Bring their transparency to benefit both buyers and suppliers.
- Bigger market
A limitation of traditional auctions is often the need for suppliers to attend the auction event in order to participate. Auctions that are in a different suburb, city or time zone, all create logistical barriers suppliers need to overcome. Even the simple action of traveling a few streets to deliver an offer increases negotiation friction and reduces the change of price changes. eAuctions remove negotiation friction. Meaning more suppliers can reach more customers, and change their prices more often, leading to a better outcome.
eAuctions have built in process and alerts that reduce the chance of suppliers making pricing errors. Automated notifications ask suppliers to review their offers. While historical spend tolerances highlight potential errors. The online format means offers can be imported and exported quickly. A capability that allows rapid edits of data points (and off-line storage). These features mean that pricing errors are quickly found, and corrections made before it’s too late.
Faster, shorter, better, bigger, and smarter. The promise of the internet is delivering for suppliers. With eAuctions bringing more customers, more cheaply. Letting suppliers focus their efforts on great service, and not on uncommitted prospects.
FIrst published at PASA Blog.
(This is the second article we’ve written about the eAuction love and cravings. Our first, on buyer benefits can be found here.)