Bidding Procurement Introduction
Bidding Procurement, also known as "Reverse Auction", "Auction Purchasing" or "auctions" is a integration of tender, auction and Internet Information Technology.
Bidding Procurement: similar products to more than two suppliers for the procurement of the premise,
then suppliers initial bid against each other
using the starting price (base
price), gradually reduce the price until the purchaser to accept
the deal. Purchaser issue the
bidding tender, predefine the
bidding condition and presided over
the auction process. The approved
qualified suppliers are anonymous
while compete between each other. It
provide a platform allow the
suppliers compete between each other
in order to get a ranking and get
the bid.
Compared
with Traditional Procurement,
Traditional Procurement is through
the method bargain or through the
only one bid. In order hand Bidding
Procurement allows to bids in
order to get average market cast
rapidly.
| Traditional Procurement |
Bidding Procurement |
Conclusion |
| Time consuming during negotiation with supplier on procurement inquiry; |
Directly to auction; |
Save time and effort, and convenient. |
|
Low effectiveness to convey the price-cutting pressure during procurement inquiry by buyer; |
At same time, compete among
suppliers for the bid; |
Search out the starting price, make deal quickly.
|
| Bidding will inevitably lead to only a lucky chance to win the bid behavior; |
Within the specified time,
bids against each other; |
Flexibility, until make the
deal. |
| Procurement of more traditional human factors, resulting in difficulties in the management of procurement decision makers. |
The same system platform; |
Objective, visible and controllable. |
Proved that, through the
Bidding Procurement can reduce the procurement costs 5% to 30%, average of savings 15%; while reduce the procurement costs, the
Bidding Procurement can also be used effectively to shorten the procurement cycle about 30% to 50%.
| Major Projects |
Reduce Circumstances |
| Computer and Server Equipment |
5-8% |
| Sewerage Treatment System |
6-9% |
| Chemical Production Line |
8-12% |
| Transportation and Logistics Services |
8-12% |
| Infrastructure |
5-14% |
| Storage Shelves and Storage Equipment |
12-18% |
| Forklift and Material Handling Equipment |
15-22% |
| ERP Application and
Implementation |
20-25% |
| Fast Moving Consumer Goods
Production Equipment |
20-30% |
The
Bidding Procurement against the limitations of
Traditional Procurement, able to
reduce the procurement cost, improve
the product competitiveness and
enterprise's economy benefits.
Provide a competitive auction
platform, it will greatly reduce the procurement and transaction costs,
reform the Traditional Procurement and reduce corruption. Besides, as an effective bidding program,
scientific, and advanced procurement method is for the enterprise and the government brought
in substantial economic benefit and
great social benefit.
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