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eProcurement
Coop Purchasing
Contract Management
RFP Evaluator
Requisitioning
Reverse Auctions
Pricing
Solutions
Getting Started
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A reverse auction is a bidding process in which multiple suppliers bid against one another electronically. In this process the suppliers are allowed to see each other's prices. They are assigned a randomly generated number to ensure that the suppliers remain anonymous to one another. The allotted time period for a reverse auction does vary; it could last for one hour or up to two weeks. Prices are driven down as suppliers try to outbid one another.
Benefits Of A Reverse Auction:
- Lower prices—price savings can be anywhere from 5% – 70%.
- Level playing field for suppliers—suppliers adjust their prices based off their competitors' prices, thus ensuring equal chance of winning for all suppliers. This also helps maintain a fair profit margin.
- Increased competition—the internet allows suppliers in different geographical areas to participate in the auction.
Bid Sync Reverse Auctioning Features:
- Fully automated reverse auction—reverse auctions are very simple to create and process.
- Real-time viewing—both the agency and supplier receive instantaneous feedback on the reverse
auction pricing as it is being conducted online.
- Open type bidding—this feature is unique to BidSync. Traditional methods of reverse auctioning require the suppliers to bid a lower price each time they bid. BidSync allows the supplier to bid any price, which enables the agency to award not only according to price, but also according to best value.
- Automatic extension—all reverse auctions on the BidSync system will be extended by 5 minutes, if a supplier places an offer within 5 minutes of the auction closing. This ensures that the reverse auction process is fair to all suppliers who are participating.
- Reporting—the BidSync system makes reporting very easy. Agencies can generate a report of the suppliers notified, of the suppliers who viewed the reverse auction, etc.
- Automatic tabulations—the BidSync system will tabulate reverse auctions automatically in various formats.
- Supplier Participation—to increase the competitive nature of the reverse auction, BidSync vendor support will research and find more suppliers to make the reverse auction more competitive.
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