I recently had the pleasure of speaking with Pierre Broenner, an experienced purchasing consultant and expert in Procurement e-Auctions. 

We discussed why e-Auctions haven’t fully caught on yet, and why now is the time for every buyer to master this tool.

Here is a summary of our discussion:

What is an e-auction?

Let us start by defining e-Sourcing. E-sourcing refers to the use of electronic systems and platforms to conduct various procurement activities, including supplier identification, solicitation of bids, and evaluation of proposals. This digital approach streamlines the sourcing process by allowing buyers to easily manage and track sourcing events, communicate with suppliers, and analyze bid data. E-sourcing platforms often feature automated workflows, templates for request for quotations (RFQs) and request for proposals (RFPs), and robust reporting tools. These capabilities not only reduce administrative burden but also ensure a more structured and consistent approach to sourcing, leading to better supplier selection and enhanced procurement outcomes.

E-auction, one of the tools in e-Sourcing toolbox, is a dynamic, competitive bidding process conducted online, where suppliers bid against each other in real-time to win contracts. E-auctions can be used for both reverse auctions, where the lowest bid wins, and forward auctions, where the highest bid wins. This method is particularly effective in finding market price, as it fosters a highly competitive environment among suppliers. E-auctions provide immediate visibility into the market pricing and enable procurement professionals to find the correct value for money. The transparency of the e-auction process also helps build trust and fairness, as all bids are visible and the process is clear and auditable.

Why haven’t Procurement e-auctions caught on?

Pierre Brönner pointed out that there are several reasons for this. First of all, he pointed to a lack of knowledge and experience, which makes it more difficult to conduct e-auctions effectively. Many buyers feel uncertain about how to use e-auctions and how they can benefit from them, resulting in a hesitancy to use these tools.

Second, the wide implementation of e-Sourcing tools required is not there. Specially small and mid-sized companies have not taken the step to digitize their sourcing process. 

Why is it time for every buyer to know e-auction?

We live in an age of digitization, and e-auctions are an invaluable tool that can help buyers reach market price and save labor time.

During our discussion, I took the opportunity to ask Pierre about his specific experiences with procurement e-auctions, given his background in the field. Pierre shared several examples where he has used e-auctions to achieve significant savings, in some cases an incredible 67% savings in the fasteners subcategory, and create open and fair competition among suppliers. He described how he has seen buyers go from being uncertain and questioning individuals to becoming big proponents of e-auctions and how it can change the buying process for the better.

Fredrik and Pierre strongly believe that e-auctions are an important tool for the buyers of the future. With the right knowledge and tools, every buyer can take full advantage of e-auctions and significantly improve their purchasing process.

Pierre Brönner emphasized that e-auctions not only give buyers access to a more transparent and efficient purchasing process, but also enable a greater market reach and better competition in certain segments. E-Auctions, when used correctly, can become a central part of the strategic purchasing of the future!

In closing, we both want to encourage all buyers, regardless of experience level, to invest time and effort in learning more about e-auctions. It’s a game-changing technology that offers huge opportunities for those willing to adapt and learn. 

Are you ready to step into the future and begin your journey with e-auctions? Visit Pierre Broenner expert in online e-Auctions, on company website if you want Pierre to support your companies journey to e-auction mastery.

In closing, we look forward to seeing how e-auctions continue to shape the purchasing landscape and we hope you will be a part of that journey!

///Fredrik Axelsson

Are you interested in learning the Procurement e-Auction basics? 

By attending LHTS’ bundle of courses “Procurement E-Auctions“, you get the first insight in Procurement e-Auctions. The course is mainly for you who have some experience executing sourcing events and are ready to add more possibilities in your sourcing toolbox. These courses cover everything from the basics of Procurement e-Auctions to how to effectively execute an e-Auction.

Unleashing the Power of Digital Procurement

Welcome to the world of procurement e-auctions, where cutting-edge technology meets strategic sourcing. In today’s rapidly evolving business landscape, traditional procurement practices are being revolutionized by digital solutions, and e-Auctions have emerged as a powerful tool to optimize procurement processes. This comprehensive course package on procurement e-Auctions aims to equip you with the knowledge and skills to leverage this dynamic platform and achieve significant cost savings, enhance supplier relationships, and drive operational efficiencies.

Course Overview:

The course on procurement e-Auctions is designed to provide professionals like you, who are responsible for purchasing goods and services, with a deep understanding the confection between category strategies an online procurement auction as negotiation method, best practices, and considerations when setting up an e-Auction. Through a combination of theoretical concepts, practical case studies, and blog posts, this course will empower you to navigate the intricacies of conducting successful e-auctions and maximize value for your organization.

Key Learning Objectives:

• Understand the Fundamentals of e-Auctions: Explore the core concepts and principles of e-auctions, including types, processes, and essential terminologies. Grasp the benefits and challenges associated with e-Auctions in procurement.
• Design Effective e-Auctions: Learn how to develop customized e-Auction execution based on your Category’s specific requirements. Discover various auction formats, bidding rules, and supplier qualification criteria to optimize outcomes.
• Prepare for E-Auctions: Dive into the critical pre-auction preparation phase, including supplier selection, data collection, specification development, and establishing auction parameters. Gain insights into supplier engagement and communication strategies to ensure a smooth auction experience.
• Conducting Successful e-Auctions: Master the art of creating robust auction events, including setting up bidding rules, pricing structures, lotting strategies, and auction timelines. Explore techniques to foster healthy competition among suppliers and manage auction dynamics effectively.
• Supplier Relationship Management: Understand the significance of maintaining strong supplier relationships in the e-Auction process. Learn how to engage suppliers, handle objections, and establish mutually beneficial partnerships for long-term success.
• E-Auction Software and Tools: Meet Medius and their  online sourcing platform
• Connect your Category Strategy with e-Auction negotiation format.

Benefits of the Course:

• Acquire comprehensive knowledge of e-auction concepts and strategies.
• Enhance your procurement skills and become a proficient e-auction expert.
• Potentially unlock significant cost savings and achieve improved procurement outcomes.
• Strengthen supplier relationships through effective communication and collaboration.
• Streamline procurement processes, optimize efficiency, and reduce cycle times.
• Gain a competitive edge in the digital procurement landscape.

Embrace the digital transformation of procurement and harness the potential of e-Auctions to drive tangible business results. Join our procurement e-Auction course to gain the expertise needed to excel in this rapidly evolving field. Equip yourself with the knowledge, skills, and confidence to navigate the world of digital procurement and unlock new  value for your organization.

Note: Illustration to the blogpost “Pierre Broenner, expert in Procurement e-Auctions” is an image owned by Brönner Sourcing Partner AB.

Information about our Online Procurement courses in Swedish.