"One of the biggest problems facing business and government agencies today is that, as a result of uncompetitive practices, they are over paying for goods and services. Our goal is to eliminate that problem." Intengo
How do e-auctions work?In its most simplistic form, Purchasers specify the product they require to buy and Intengo sets up the e-auction on the electronic platform. Sellers of the specified product then compete to offer the best price for the product. The e-auction is only open for suppliers you invite to participate. The event is conducted on-line. The supplier will always see what the lowest bids are, but not the identity of the bidder. The bid should be considered as an obligation between the supplier and the buyer to enter into a contract.
What products or services would be suitable for e-auctions? Most procurements that are of sufficient value to attract competition, with a requirement that can be accurately specified and for which there is a competitive market can be suitable for an e-auction. It can be frame agreements or one time purchases. The most obvious products are standard products specified by an article number for example. But services such as cleaning, transportation, security, logistics, catering etc. could also be suitable. Also construction work could be suitable, but in this case all suppliers should first submit a written quotation in response to a formal inquiry. The buyer should evaluate the quotations with regard to any quality aspects that apply. Those suppliers who are qualified should then be invited to participate in a e-auction event. At what stage during my procurement process should I prepare for an e-auction?As soon as you have identified a requirement or registered that a contract is coming up for renewal you need to start planning your e-auction as part of your procurement. This will include prequalification of suppliers and specification of the product or service. Who else are using e-auctions?E-auctions are increasingly being adopted by major players in industry and in the public sector. E-auctions are firmly built into the procurement strategies of many private sector companies to source direct materials, products and services and support services. They are increasingly used to support management of the supply chain and are not strategically restricted to primary suppliers. Both commercial companies and central civil government and wider public sector organisations are building e-auctions into their sourcing activities. Are e-auctions compliant with the EU Directives?The correct use of e-auctions is entirely compliant with the new EU public procurement legislative package, which specifically features e-auctions. The EU favours the use of e-auctions because of their transparency and strong competitive element. What is the cost of running an e-auction?The cost of running an e-auction is always a fraction of the savings you are going to realize after you implement this new technology into your procurement operations. Are e-auctions only about pressing prices?No. An e-auction enables the buyer to arrive either at or close to the true market price in an efficient and transparent way, but does not encourage suppliers to submit bids at unsustainable levels. On the other hand by integrating non-price parameters into the system you can easily conduct an e-auction based on TCO (total cost of ownership) Who can use Intengo?Intengo is open for the use of any company, public sector body, charity or other organisation located anywhere in the world, with a procurement or investment budget that is attractive for suppliers. At which currency and language could I perform the e-auction?Most currencies and languages in the world may be used. |
