Many industries face intense pressure to cut costs. Executives everywhere are forced to tighten the budget belts.
Take the mining industry for instance: despite the pressure of cost cutting this industry has to contend with the mandate of safe production at all costs against the backdrop of other challenges such as commodity volatility, labour pressures, skill shortages, cost overrun on capital projects and adhering to stringent compliance criteria.
Those of you who are experts in conducting reverse auctions, would agree that when following the correct sourcing strategy, reverse auction tools can be very powerful in the hands of sourcing professionals. Some of the benefits you may have experienced with reverse auctions are reduced baseline prices, fair and open competition amongst your supply base, greater transparency in your procurement process and speedier ways to source.
The complexities of modern-day competitiveness certainly challenge the traditional business process. Take supply chain for example: it is progressively evolving from overseeing a few disjointed back office functions into a strategic “big picture” leadership role that can radically increase profit margins by up to 22%, according to an IBM CPO study conducted in 2013.