We've used reverse auctions for:
- Servers, desktops, laptops
- co-termed bundled software maintenance renewals
- Telecoms Expense Management Services
- Mobile device per minute and per kb usage rates
Have had some large successes with double-digit fee decreases, and have had some total dogs. Depends largely on how aggressive suppliers are for the space being auctioned and how comfortable they are with the auction process. The less comfortable they are, the more tentative they are to give aggressive pricing.
Having led implementation of eProcurement and eSourcing strategies before I'd recommend reverse auctions as the way to go for non configurable IT & Communications hardware, off the shelf software and also managed services that have a clearly defined scope and statement of work upfront. I would also recommend leveraging the Ariba Supplier Network for vendor identification for eRFX and e-sourcing events.
I agree with Sean. Leveraging the Ariba Supplier Network/ Ariba Discovery is a great way to help with supplier identification. IT hardware/software is a leading category on Ariba Discovery. Buyers that utilize Ariba Discovery in the sourcing process are saving on average 1.5% with each additional supplier they include in their event.
Thank you all for input on this - highly appreciated and definately something I can take on a discuss further.
Have any of you tried e-auctions for Network services, data traffic etc.?
Depending on the the requirement your company may have for these type of services it might be better to have a eRFX to identify vendors who can meet these requirements then a sourcing event for bid management and contract(s) award.
Cheers & Happy Sourcing!