Reverse auctions can generate significant savings if suitable., but do you know how much and what commodities to consider? I’ve listed below articles mentioning saving results with reverse auctions.
Typical savings for Direct commodities range from8-23% and Indirects from 9-45%
How a reverse auction saved the MoD over 65% | UK – 2003 – ‘pocket pack tissues’ (PDF)
Savings of 42% in the transportation of fuel oil | US – 2004 – transportation
North Tyneside Council saves 35% in its first online auction | UK – 2003 – Office supplies
MyFloridaMarketPlace saves 33% | US – 2004 – Office consumables (PPT presentation)
Reverse Auction Yields Nearly 30% in Savings | US – 2004 – computer tapes
The US Army saved more than 30% | US – 2005 – electronic components for the Patriot missile
Novartis saved 17% in buying PCs | US – 2002 – PCs
(to be continued)…