E-Sourcing Forum » The 7Cs Cheat Sheet

The 7Cs Cheat Sheet

January 12th, 2009 at 06:31am 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.

This post was originally appeared on ESF on April 25, 2007.

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Entry Filed under: General, Reverse Auctions

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