How eAuctions are enhancing sourcing efficiency

While procurement strategies evolve, tools like eAuctions remain a practical solution for improving efficiency and cost savings.eAuctions provide a structured, competitive environment that allows suppliers to bid in real time, helping procurement teams achieve better results.

Why use eAuctions?

We are seeing more customers incorporating an eAuction round into their annual RFQs, typically after the second round. eAuctions are an effective way to challenge incumbents on strategic lanes or provide opportunities for new suppliers to join your pool.By using an eAuction, you foster a highly competitive environment where top performers have the chance to secure new business.

What Makes eAuctions Effective?

eAuctions streamline procurement by creating a transparent, competitive bidding process. Suppliers can place real-time bids, which helps procurement professionals make quicker, data-driven decisions.

Keelvar offers two types of eAuctions:

• English Auctions: Suppliers place decreasing bids, with the auction ending when no further bids are made. This format is useful when price competition is the primary driver.
  ‍
• Dutch Auctions: Prices start low and rise until a bidder accepts, making it well-suited for high-demand or time-sensitive procurements.

Seamless Integration with RFPs

One key advantage of Keelvar’s Sourcing Optimizer is the ability to transition smoothly from an RFP to an eAuction. After an initial round of bids, the most competitive items can be moved to auction, pushing suppliers to lower their prices further.

By integrating eAuctions into your procurement strategy, you can simplify complex negotiations and achieve more competitive pricing without sacrificing transparency or control. With the right tools, sourcing becomes a more efficient and effective process.

Download our eAuctions datasheet for more information