The 7Cs Cheat Sheet
2 comments April 25th, 2007 David Bush - Iasta
Many people often wonder (especially eSourcing newbies) what the criteria are for a good reverse auction sourcing event. Since billions and billions of spend are negotiated through reverse auction technology every year, these rules have been developed and refined over time. Honestly, I do not even know the origin of this list or any of the changes it may have gone through over time. I suspect this was some of the original FreeMarkets marketing collateral that could fill an Olympic sized pool. I do know that I have seen it around enough to consider it public domain.
The 7Cs Category Cheat Sheet
- Contractually available
- Clearly definable requirements
- Competitive supply base
- Commercially attractive spend to bidders
- Compressible margin
- Complete data set
- Commitment to process
These are all very good points to address in your decision process. #2 and #3 are probably the most important to understand and account for, as I have stated before. I strongly feel that #5 (Compressible margin) is an admirable but not required goal. Achieving price transparency in rising market conditions is just as successful as getting 14% on your office supplies event. At one point or another, you will be required to focus on these 7 concepts and the amount of savings which is captured and implemented will be directly correlated to the adherence of these rules.
Entry Filed under: General, Reverse Auctions, Supply Management Best Practices
