E-Sourcing Forum » Reverse auction decision tool

Reverse auction decision tool

November 30th, 2006 at 05:16am 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.

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

1 Comment Add your own

1. Sean Delaney - Iasta UK | December 1st, 2006 at 8:16 am

Dave, I agree it is a good decision tool but I think the readers of the ESF will be informed enough to use it as a “simple tool”.

However the target audience of the OGC website are not so well informed and are unlikely to be in a position to realise that the technology is changing and although an item may not be suitable today it may be suitable tomorrow. As you know eSourcing is much broader than just auctions.

Another observation I would like to add is that from my experience in local Government they seem to be more interested in Tendering and Collaboration (between boroughs). Auctions are not so much of a priority and I am wondering whether such a decision tool is responsible for this?

So in my honest opinion the OGC site was relevant 3 years ago and has done much to stifle the adoption of eSourcing (Local Government) by over simplifying the opportunities to Auction. I think the questions being asked reflect the intentions of the 4 sponsors particularly TP trying to turn auctions into a black art! As many of the categories will fall into the amber zone and therefore suggest that the buyer must seek further advice from……?

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