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Drive down your purchasing costs
Attain the best market prices for all your purchases
Conventional negotiation methods, be it face-to-face meetings, phone calls or fax or email, have serious limitations on the number of qualified suppliers that you can reach and the number of bids that you can collect. These limitations can be overcome by means of electronic, online, real-time and competitive purchasing solutions.
For instance consider that a company has a week to collect bids for a purchase from 4 suppliers. After collecting the initial bids, comparison tables need to be prepared and the suppliers need to be contacted again for revisions of their initial bids. This cycle of collecting bids and contacting the suppliers one-by-one for revisions will and should continue as long as time permits. However, time constraints will almost in all cases bring a premature end to this cycle.
The method of electronic reverse auctions do create an open, clear and competitive market place for suppliers to see the real-time comparison charts and to respond and revise their bids over and over again within a short time-frame.
Save on Time and Reduce Your Administrative Efforts
The procurement process, especially the negotiation stage can be time consuming and cumbersome when done with conventional methods. Negotiations for an IT purchase can take a week or it can take months to reach an agreement for a new painting wing to your factory. E-auctions have the advantage of cutting back these timeframes to a matter of hours.
By freeing up time of Purchasing Managers and staff, they now can focus on more value added and strategically tasks like finding new qualified suppliers, setting up better contracts and pinpointing the exact purchasing needs within the organization. On the other hand, these savings of time and manpower often result in projects finishing ahead of schedule resulting in an increased return of investment.
Expand your Net of Qualified Suppliers with Promena’s Services
One of the determining factors in successfully reducing your purchasing costs is the number of qualified suppliers you can reach.
Promena with its comprehensive and ever growing database of qualified suppliers can help organizations to conduct electronic auctions on all purchasing categories ranging from industrial clothing to turn-key constructions projects.
Promena provides access to its database by informing its customers of suppliers who have a proven track record within the platform.
Control your Purchasing Activities
Promena’s e-auction platform keeps track of all the data related to the final purchasing decision. Technical specifications, administrative conditions, prices and non-price factors and all the relevant information aiding you in reaching your decision, can be back-traced within the system. Similarly, real-time data like suppliers’ initial bids and price revisions, their comments and questions are stored and can be queried with ease.
Having all this data at your fingertips with Promena’s reporting capabilities, will create an edge for you in evaluating supplier and analyzing the market price.
Transparency
Promena creates an environment of ‘true’ competition by sharing the relevant information with the suppliers in a complete, equal and fair way. The competitors are sure that they all have the same means and opportunities. This transparent, clear and open way of conducting trade eliminates controversial and unneeded comments.
Promena’s Business Model of Outsourcing
No Waiting Periods
Electronic auctions are not IT projects.
Promena’s e-auction platform is hosted on one central location and access is provided via the Internet. There is absolutely no installation required on the customer’s or the suppliers’ sites.
This model allows Promena’s customers an immediate implementation of the process and an immediate start on improving their “bottom line”.
No Initial Investment Required
An Internet based architecture requires no investment on your site; neither on hardware nor on software.
A personal computer with an Internet connection is all that is required to have access to Promena’s platform. This dramatically will reduce the initial investment on your end and thus will increase the benefits realized from the e-auction project.
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| Promena’s electronic auction method was quickly adopted company-wide due to the success of initial auctions. To name a few, we saved 16.3 % on printed materials and 24.6% on marketing materials. |
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