Reverse auction decision tool

1 comment November 30th, 2006 David Bush - Iasta

A few weeks ago, I wrote a blog about how to go through the process of determining a suitable reverse auction candidate. Jean-Philippe Massin of the blog, Strategic Sourcing | Europe, even added some very good comments. To add to that topic, I wanted to pass along a link from the UK Office of Government Commerce, who has designed an Excel based reverse auction decision tool.

By definition on their website, “the OGC works with public sector organisations to help them improve their programme and project management, become more efficient and save money on the goods and services they buy. This allows them to deliver better value and direct more of their resources at important front line services. OGC is an independent office of the Treasury.”

It is a pretty simple, but effective, way to stress test your potential project for auction suitability. Many of the same concepts that I described previously are represented in the Excel Decision Tool. However, there is no substitute for human intelligence, and strictly letting a few simplified checkpoints dictate the decision will not bring the desired results. Use a tool like this as a starting point and not an ending point and you will avoid mistakes in logic that can actually hinder your decision process.

Entry Filed under: General, Reverse Auctions, Supply Management Best Practices