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Best Practices
After the Auction
  • Feedback to non-awardees on what they can do to win
  • Suppliers must ultimately get the business they earned through bringing attractive prices to the e-auction
  • After each e-auction, summarize your lessons learned. Search for root causes to issues
  • Don’t permit stakeholders to pose objections based on success factors or supplier criteria not initially disclosed
  • Realizing the savings that were negotiated – that’s the key task
 
Policy
  • Enforce policy that if two or more suppliers are qualified – item is eAuctionable.
  • Require top Sourcing Manager/VP approval not to eAuction a commodity - Change buyer mindset to “Everything is eAuctionable”
  • Require each sole source to be aggressively approached to agree to Tier II Auctions.
  • Require all commodities to be evaluated by multi-variate attribute analysis; prioritize and select auction approach, based on outcome
 
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