Savings ... the right path for new resources
Savings ... the right path for new resources
Reverplace offers the most powerful online service of Reverse Auctions to buyers who are willing to obtain the best price for acquisition of goods or services, inviting sellers to compete for a business on the Web during a predetermined period of time.
Essentially, .... buyers publish on the Web Specs and Conditions of what they intend to buy, ... and then, ....
Suppliers or Vendors, invited by the buyer, will compete during the established time for the auction. Offers made will be showed ranked ascending online (lowest up).
Once the auction timer goes to end, the lowest price offered by a seller will be considered by the buyer.
As Buyer, the best way to obtain the lowest prices on a deal is, without doubt, making compete the suppliers for the deal on a bid. This is the core purpose of reverse auctions .. getting savings for you. Reverse auctions are perfect for the acquisition of specific goods or services purchased during a period of time (blanked orders for goods and services). The main motivation on reverse auctions is the attainment of savings, since characteristics of items/services are well defined and the quality should be controlled by buyer during the agreed supply period. Register and participate as buyer. Important: Opening auctions require credit (Tokens).
Buyers define by means of a specific reference (Part Number / produtc Ref) or with help of a detailed description, what they intend to purchase, placing this information on a simple form, including purchase conditions like: Delivery place, delivery time, payment conditions, packaging, general terms and conditions, etc... and then,.. buyers invite suppliers to a reverse auction, where they underbid trying to get the deal.
Terms and Conditions of every auction are always determined by the buyer in the opening form or with an additional document accesible for all suppliers invited to the auction. They are sometimes simple like: "Payment terms 30 days net invoicing" or much more complex for big deals including Credit conditions, insurance bonds, warranty terms, quality standards, technician certifications, etc...
Buyers also are responsible for giving enough instruction to suppliers invited to the auctions, assuring that their offers will be in accordance to the terms and conditions requested.
Suppliers have to be prepared to bid against other potential suppliers, reviewing in advance and thoroughly all specs and conditions of the bid, in addition to the required cost calculation, and assuring all the time, that the bidding process don't put in danger the resources of the company they are representing. Successful suppliers of reverse auctions are good prepared, with bullet proof and dynamic spreadsheets that can produce ONE (1) single value to be used in the auction with each bid, and know precisely the lowest bid they can do (the economical lowest offer), without sacrificing required quality.
Specific items with large volume sales (supplies / consumables), or long contract periods (services) with low margins, are the cases where suppliers need to be very precise on calculations, reviewing the whole supply chain.
Key elements to be reviewed by suppliers on a reverse auction:
Any person registered can open a reverse auction to buy specific goods or services. However the auctions at Reverplace are not Public. Therefore, in order to participate on a reverse auction as a supplier by Reverplace, it is required for this seller to be invited by owner of the auction (the buyer). Buyers on the other side, need to have credit (Tokens) to be able to open an auction. Tokens can be purchased via PayPal or credit card on a secure connection, and the majority of auctions will require only one Token to be opened. One Token investment value = USD 10.
The first step is to get registered in Reverplace. Buyers can act in the name of companies, but it will be the responsibility of SELLERS to check the existence of this liaison Buyer (Owner of auction) with Representing Company at the moment they receive the invitation to the auction. Buyer is also clear about who invites, and which company the seller represents.
Buyers will issue for every auction Terms and Conditions (T&Cs) that sellers will read and accept before entering the auction.
Auctions can finish with a buyer/Company purchase commitment (decisional auctions), if Ts&Cs indicate this automatic decision; or they can be used as tool to obtain the lowest quote of a good or service (RFQ auctions), that later could be transformed in a purchase order (PO) or a contract.
Companies of an important size require to do RFQ-auctions in order to obtain the best price(s), and then buyers proceed to issue the corresponding purchase order in the ERP system for its approval. Awarded supplier will get the PO once approved.