Retailers here are twenty additional reasons why you ought to be running reverse/forward auctions.

July 26th, 2010

I could also name this post twenty excuses I have heard or twenty benefits you are missing because you are not using e-procurement tools.

This author has posted a number of times on twenty reasons why retailers should use e-procurement tools including everything in the procure to pay process. I post that subject a number of times a year. Quite frankly there are many more than twenty reasons. Here is a different type of look at the same subject.

1. It’s about the money.
2. It’s not about the money.
3. You don’t have specifications even if you think you do.
4. You will have specifications once the event is complete.
5. You have great relationships with all of your suppliers.
6. You don’t have great relationships with all of your suppliers.
7. You don’t know where to find additional sources of supply?
8. You will have at least 8-10 new sources of supply for every category you run.
9. All of your management team collaborate and make sure they aggregate their purchases. No they don’t.
10. You are getting the best prices in the market according to your buyers.
11. Believe me; you are not getting the best prices in your market.
12. All of your contracts are less than two years old! Ha, Ha Ha! They should be.
13. All of your overstock and out of cycle inventory has been removed from the back rooms of your stores! If it had, your shrink would be lower.
14. You are aware of all of your suppliers green and safety programs?
15. You are taking advantage of all of your suppliers green and safety programs.
16. You are measuring all of your commodity purchases against the appropriate indices.
17. You are getting the best use of your team because they have all the tools they need in order to source products and services efficiently.
18. Your people could be spending more time on more important projects if they used low cost SaaS e-procurement tools.
19. You have never had a contract auto renew or evergreen that cost you money.
20. All products and services you buy are top quality because you evaluate them regularly.

If you can only find three issues above that plague your operation, then you should be using e-procurement tools. Call us today. We’ll do the first one for free.

We look forward to and appreciate your comments.

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