What does a professional Supplier do, when he(she) is invited to a reverse auction …
- Has certainty about all questions and answers in regard to the product (goods) to be purchased or services to be contracted by buyer, before the auction starts; and particularly before the definition of costs and financial parameters. Must be sure that specs and terms established by Buyer who opens the reverse auction are completely understood.
- If realizes that a buyer let an open door for suppliers to offer inferior quality (or detects ambiguous specifications), as well as unclear terms and conditions, must ask the buyer for clarification and request subsequent communication to all suppliers before auction start, otherwise financial calculations and lowest limit price will be not determined with precision.
- Brings cost calculation to the limit according to the specifications and terms requested by buyer, assuring of maintaining quality and conditions established, as well as a commercial margin conforming to his(her) company sales parameters.
- Studies with professionalism his(her) own Supply Chain, and achieve strategic price alliances and discounts with his(her) suppliers in case of be awarded in the reverse auction. In this way, will obtain long term benefits without losing margin.