Lowering Total Cost through Reverse Auctions
Wes Guillemaud, Founder & CEO, Sorcity.com, Inc., Dallas, Texas, (972) 612-1411 Wes@sorcity.com
M. Theodore Farris II, Ph.D., C.T.L.
M. Theodore Farris II, Ph.D., C.T.L., Assistant Professor of Logistics, University of North Texas, Denton, Texas, (940) 565-4368 Farris@cobaf.unt.edu
88th Annual International Conference Proceedings - 2003 - Nashville, TN
Supply managers are held accountable to reduce the cost of products and services they source and rely on tools to help them achieve this goal. Reverse-Auctions have maintained a strong history over the past five years of helping supply managers do this by meeting three objectives; they gain a reduction in their sourcing cost, a reduction in their process time reduction and an often significant price reduction. The supplier also meets several objectives that include process time reduction, sales cost reduction and therefore a competitive improvement. Additionally, suppliers gain an even greater advantage if they in turn use Reverse-Auction’s to lower their cost of goods sold. This is the key to lowering the total cost of goods throughout the supply chain. This session is a joint industry-academic presentation and is intended to educate and guide supply managers at all levels to understand the benefits and risks of Reverse-Auctions. It will also dispel the myths of Reverse-Auctions while ultimately provide a quick means for them to get a better price faster.