Frequently asked questions: Tenders and negotiations

Do we need a license for an eSourcing platform?

If you already have your eSourcing platform, we will use it for the project.

We also offer our eSourcing platform "SourcingOnDemand" based on the world's leading SRM technology.

We don't want to advertise in public. Can any bidder participate in our electronic tender?

You control the participant list. Over 95% of electronic tenders are non-public.

How do we keep unqualified suppliers away from the awarding process?

Use the RFI (supplier assessment) to evaluate and choose suppliers. If necessary, include internal experts (from production/departments) in the evaluation process.

Are electronic tenders already well accepted? Will incumbent suppliers participate?

Your suppliers are probably already registered or can be registered in a few minutes. Registration and participation are free of charge with SourcingOnDemand; this prevents administrative effort on the supplier side.

In our experience, if existing suppliers are carefully introduced to the electronic process, they are incredibly committed.

How do we prevent biddings disrupting the personal relationship with key suppliers?

A well-prepared and communicated electronic tender ensures that you are perceived as a reliable partner.

The bidding rules are transparent and apply equally to all invited bidders. This does not prevent you from maintaining contact with your contacts during the procedure.

Simple tenders and negotiations with few items may be suitable for eSourcing. What about complex tenders with thousands of individual items and complex requirements?

Especially when complexity increases, electronic tendering offers significant advantages. The platform ensures that you receive consistent and comprehensive offers. Bidder communication and evaluation are greatly facilitated compared to the "classic" bid invitation with email and Excel.

How many participants are necessary for an electronic price negotiation (auction/bidding)?

Dynamic price negotiations can be conducted with two or more competitive bidders. This does not mean that they can be used in all markets and under all conditions. Talk to the experts!

What is the minimum purchase value for an electronic price negotiation (auction/bidding)?

That depends on many factors. A general answer: starting from EUR 100,000. In some areas, it is already recommended from EUR 10,000. We will be happy to advise you.

What's the difference between "auction" and "bidding"?

In the online auction, the winner is determined at the end of the online negotiation. The auctioning company is obliged to award according to the defined rules, e.g., to the cheapest or the best bidder in terms of price/performance.

In online bidding, the customer leaves the award decision open. Prices are not renegotiated, but it is possible to award them to the second or third best bidder.

How much do we save?

You'll admit it's not an easy question to ask. Comparable perhaps to "How much does a car cost?"