Supply Excellence
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Can You Predict Auction Success?

May 3rd, 2006 · by Tim Minahan · 2 Comments · best practices, events, sourcing, supply management

Absolutely, according to Rajat Mitra, the head of e-sourcing at Compass. Following up his four-step process for determining if a category is “auctionable” (see Compass Uses Auctions to Buy You a Better, Lower Cost Lunch), Rajat requires suppliers to complete a detailed pre-bid RFP response.

Pre-bid RFPs ensures that the suppliers fully understand your requirements. It also serves as an early indication of what the results of an auction might be.

Such early insight enables Compass to determine whether the market is appropriate for an auction or if initial requirements and specifications were clearly defined and attractive to suppliers. “It also allows us to manage expectations within your company, such as giving the finance group an early view of the expected savings impact of an auction,” says Rajat.

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2 responses so far ↓

  • 1 Ryder Daniels // May 6, 2006 at 10:55 pm

    Is there a link to this article in more detail?

  • 2 » …And What I Learned From Top Performing Supply Organizations- Supply Excellence // Jun 6, 2006 at 8:51 am

    [...] Establish clearly defined metrics and incentives – and shamelessly market your results. It may seem obvious, but the best way to ensure program success (and secure budget and resources) is to clearly map out your goals and broadcast these to executives and stakeholders. Reinforce these goals often. (If it’s “three times for the average mind,” you’ll need to repeat program goals even more to get through to busy executives.) And don’t forget to market your results. Forum attendees such as Compass use multiple marketing channels to communicate program results, including company newsletters, presentations at company meetings, and distributing “deal sheets” on every sourcing event to business and functional leads. Whether you’re just starting out or looking to jump start a stalled supply management or contract management initiative, these tactics can help accelerate success.  [...]

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