Electronic Auctions (eAuctions) for buying legal services allow potential suppliers to compete online, in real-time, to provide prices for the goods or services under auction. eAuctions have been successfully redefining Legal Procurement negotiations for several years now, but there are still many industries and businesses unaware of the benefits this type of negotiation can provide.
Unlike traditional auctions, eAuctions for buying legal services work by putting downward pressure on the price by introducing competition and transparency into the procurement process. The auction winner is the firm to whom the contract is awarded. When not using eAuctions companies typically go out to tender, receive and review quotes, then shortlist and negotiate with the bidding firms – all before selecting the firm they want to work with. While time-consuming (typically taking between 4-8 weeks) savings in the region of 10% can still be realised with this method, but because it lacks transparency savings are not as good as they could be. By moving to eAuctions the result is a streamlined procurement process that saves both time and money. eAuctions are typically completed within 24-48 hours and because greater competition can be introduced to the process by inviting more firms to bid unheard of savings can be achieved – our average savings for clients are 43%!
eAuction’s provide a fair and transparent process for legal procurement, firms can see where their prices sit against the other bidders and decide whether they want to exit the auction or reduce their prices and the company running the auction gains real-time market pricing intelligence. eAuctions can be based on price alone or you can take into account other criteria such as quality, delivery or service levels by applying weightings to the bidding firms, enabling you to select the firm that is not just the cheapest but the firm that best suits your requirements – enabling real and achievable savings!
By using an experienced external spend management company such as Coote O’Grady to run the eAuction for you, you can realise maximum benefit from the process. Please do look at our webinar on our YouTube channel for more information or get in touch to find out how we can help you – firstname.lastname@example.org
Discover more on eAuctions on our YouTube channel https://www.youtube.com/watch?v=cdJ3ctMu13A&t=756s