Click here to see how Wax Digital helped cut the cost of a facilities maintenance contract by 56% and shaved 28% from the price of staff uniforms.

Just two events in the last few weeks that have combined to save one leading University over £400,000 per annum.

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Our expert consultants have experience of driving significant savings across a wide range of key FE spend areas, with examples including:

• 14% on Building Projects
• 22% on Catering Services
• 56% on Facilities Maintenance
• 47% on IT Hardware
• 28% on Marketing Services
• 37% on Plasma / screens / projectors
• 16% on Portacabins
• 29% on PPE
• 35% on Software
• 19% on Sports Equipment
• 51% on Stationery
• 43% on Training & Recruitment
• 7% on Transport services / coaches
• 28% on Uniforms
• 11% on Waste Management

eAuctions: The Supplier Up-Side

Concerns over the use of electronic auctions as a contract negotiation tool are typically founded on the premise that the auction process is highly adversarial, makes it impossible to build long-term supplier relationships and is focused only on price, with scant regard paid to the value of other ‘soft’ qualities such as an in-depth understanding of your organisation.

Any and even all of these can be true if the process is managed poorly, but in practice a well-planned and managed event no more risks damaging supplier relations than a traditional round table negotiation process.

So long as auctions are run transparently and stick to best practice principles, suppliers only have cause to complain where they are concerned that they are uncompetitive, either as a result of inefficiency or as a result of artificially inflated margins. If they have confidence in the value of their proposition then they have little to fear – and much to gain – from open competition with other vendors.

As for long-term relationships, the reality is that over 60% of auctions result in the incumbent being re-awarded the business. Since they know you well, are likely to have a weighted advantage to account for cost of change, and there is no reason their costs should be higher than their competitors then they will often come out on top – but you’ve kept them honest and tested their margins in the market.

In addition, there are a number of very real benefits to most suppliers taking place in an electronic auction:

Rapid, cost-effective route to market: Suppliers have a published deadline for the event, giving genuine transparency to the decision-making process, and avoiding a protracted negotiation cycle with consequently high costs of sale

Process confidence: The very fact of running an auction event demonstrates that the award process has been more thoroughly thought through and that therefore the chance of a contract being awarded – and being awarded very soon – is high.

Market intelligence: Suppliers may not like the price compression result of an auction, but they cannot argue that against the reality that they are getting real time pricing and market position information. They have the ability to make adjustments, if they choose, and can clearly see if their offering is uncompetitive.

The key is to ensure that suppliers are communicated with effectively throughout the process, that they understand clearly the award criteria, and that your behaviour following the event mirrors the expectations set in advance of it.

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For more information, advice and assistance in event management please don’t hesitate to contact Wax Digital and one of our Consultant team will be only too happy to call you back.