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How does eSource assist the typical procurement process? Once vendors and specifications are identified, the bidding process is compressed into hours instead of weeks or months. Bidding occurs in real-time; no more hunting for faxes and quotes that may not compare easily. Vendors can bid any time. The platform offers you automatic bid analysis and comparison tools and provides a full audit trail for each purchase you make. What are the benefits of an online process versus the standard procurement process? In an online web-RFQ or reverse auction, vendors are invited to bid in a web-based auction in real-time. In this process, vendors compete against each other to win the business. Because vendors can see the price they are competing against immediately, they have the opportunity to aggressively pursue business for themselves. They have more opportunities to earn a buyer's business then in a closed format. This format is best used in places where competition is truly based on price rather than value added services, delivery, or quality. What is the difference between a Web-RFQ and a Reverse Auction? In a Web-RFQ vendors submit proposals in real-time, but instead of seeing the other bidders and a price, vendors see a bid notice. The notice tells them whether they are leading the bidding or not. The Vendor now has an opportunity to submit new offers in confidence. Since a buyer must evaluate proposals and manually change leading bidder, the vendor may now offer service, delivery, quality or anything that plays to the strength of the vendor without tipping off the competition. A Web-RFQ is an ideal procurement tool for purchases where technical evaluations are ongoing, price visibility is an issue or where there are multiple factors involved. It features the streamlined bidding advantages of a reverse auction, but offers more flexibility to the buyer and the vendors. What are the benefits of bidding events as a supplier? Once you become a registered supplier, your company information will be retained in a database. During the sign-up process, the vendor is able to select categories of items that the vendor supplies. Buyers using eSource to find products and services may become aware of your company and other products that are offered. This brings new business to a vendor with no effort. It opens up the marketplace in which to showcase goods or services. The shortened buying cycle and knowing whether or not you are the leading bidder gives each company time to react to market pressure and to make counter proposals. How will my Vendors react? Let's face it, relationships are built by people with people. A web based purchasing tool does not interfere with a real relationship anymore than a fax machine does. Can you image someone these days saying "I don't want to use a fax machine because it interferes with my supplier relationships"? The fact is new technology strengthens a relationship by making the exchange of information easier for both parties. If a supplier truly has something to offer, the buyer won't miss it just because bids were submitted over the web. Our experience has been that vendors are apprehensive until they understand the software and process clearly. Once they see how easy it is to use and recognize the tool as a timesaver for themselves, it is accepted. Some vendors may have to walk through it while a buyer is on the phone. Once is generally enough to get someone going. How do I get started? Contacting MSA is the first step toward generating cost savings for your Small Business. One of our experience buyers will assist you getting started with training and support. You can reach us by sending an email to info@msa.com or by calling us at (724) 265-6794. |
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