Introduction to Purchasing Auctions
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Introduction to Purchasing Auctions



An overview of Purchasing Auctions and Horizon-Associates

An overview of Purchasing Auctions and Horizon-Associates



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Introduction to Purchasing Auctions Presentation Transcript

  • 1. An Introduction to “Purchasing Auctions” Optimize Costs at your Bidding!
  • 2. Introducing “Purchasing Auctions”
    • P art of the remit of a purchasing consultancy is to run reverse auctions on behalf of their customers. 
    • U nfortunately, our experience of online auction market providers is that they are expensive to use and their products are invariably all-encompassing ,  complex and intrusive.
    • W e have recently created a reverse auction site that is:
      • A stand alone product
      • Delivered at a competitive price
      • Attractive to both purchasers and suppliers in its ease of use
      • Reliant on competitive bidding at live on-line auctions to reduce prices
      • Designed, run and owned by procurement professionals with real knowledge and understanding
      • Offered with training and support throughout the Auction to ensure a smooth and effective process
    Founded in 1995
  • 3. Introducing Horizon –Associates
    • Horizon is a purchasing consultancy that focuses on helping firms become more profitable through better purchasing.
    • Horizon Associates have been trading for over 10 years and work with firms such as BT, AXA, HBOS, Nomura, Threadneedle and UBS.
    • All of our consultants have professional qualifications and extensive experience and knowledge of the financial services sector.
    • For example, the Director is a past Presidency of the CIPS, MD at Bankers Trust and Head of Procurement at the London Stock Exchange.
    • We have developed a unique methodology to achieve significant savings which at the same time improves the quality of the bought goods and services.
    • In practice we target contractual savings of up to 20 times our fee’s.
    • During these difficult times we are also happy to charge on a percentage of the savings achieved.
    “ architects of value”
  • 4. Horizon –Associates
    • Horizon Associate offer:
    • Procurement Training –to quickly improve the performance of purchasers.
    • Purchasing Recruitment – including free job board postings on
    • Spend Categorization – detailed analysis of your last 12 months expense base and the production of a number of reports.
    • Cost Recovery – looking back at your invoices from the last 5 years to identify any overpayments, duplicates or invoices that do not match contractual agreements.
    • Automated Bid Evaluation Matrix – Our tender evaluation tool helps procurement professionals develop an evaluation plan and then records the process
    • Low cost e-Auctions – from £3000 per auction at
  • 5. All – encompassing Intrusive Complex High Resources required for entry £Expensive!
  • 6. The Reverse Auction & Procurement Lifecycle Only a small part of the cycle, but done properly realises significant savings with very little hassle!
  • 7. Product Suitability for Reverse Auctions Increasing Cost £ Increasing Risk Low High High Tactical Profit Tactical Acquisition Strategic Critical Strategic Opportunity Contingency Plans Required Gate Gourmet BA £45M Loss! Price – Major Issue – Service & Supply
  • 8.
    • Suitable products have the following characteristics:
      • Strict and unambiguous specifications that ensure a level playing field
      • A competitive market
      • Price as a primary selection criterion (provided spec is met)
      • Low strategic relevance or impact (green on the previous chart)
    • Products or commodities which have proven suitable include:
    Product Suitability for Reverse Auctions Paper Products Medical Supplies Chemical Products Tools Food Construction Navigation Equipment Steel Office Supplies Bespoke Manufacture PPE Oils and Lubricants Transport Telecommunications Pallets Administration Fees
  • 9. Why Reverse Auctions?
    • They drive improvements to the preparation and planning for the tendering process. Also, with a tight spec supplier selection is simplified.
    • Opportunity for suppliers to submit revised bids for a contract (as opposed to the formal tendering process). Saves substantial negotiation time and money!
    • The site expects and encourages competitors to focus on each other’s pricing, providing increased market knowledge for buyers and suppliers and promoting competition. This provides a level playing field for suppliers and fuels business improvement.
    • The Audit Trail produces invaluable benchmarking information and all the necessary detail for contract negotiation – keeps suppliers honest!
    • The Auction process from start to finish is fully supported by a small, dedicated team that designed and built the site. Training and support is available to both suppliers & purchasers.
  • 10. Purchasing Auctions - Benefits The auction event is transparent , quickly concluded and delivers a complete audit trail within a secure and neutral environment. The emotion and negotiating hassle is taken out of the equation and invariably the price is the most competitive available . Account managers who have successfully used the auction site have said:     “ I found the Purchasing Auctions tool extremely easy to use and appreciated the guidance offered. We will definitely be using this valuable service again, especially as we saved 33% on our spend at our first auction!  It is great to find a medium created by purchasers for purchasers. Thank you Purchasing Auctions!” Pauline Sumner, Peel Ports   “ We were very impressed with the auction site. It is one of the best we have used. Easy to use , clear information and quick” Karen Hardy, Polestar
  • 11. Preparation for Auctions
    • Preparation is so essential for Success:
      • Preparing detailed product or service specification.
        • The fewer parameters allowed to vary: the better. This will help suppliers in bidding and also make the post-auction evaluation more straightforward.
      • Recruiting suppliers
        • Some suppliers are not familiar with electronic reverse auctions, so may not be immediately willing to join. in. Suppliers will need validation in the normal way. .
      • Training purchasers and suppliers
        • Purchasing Auctions can provide training assistance on use of the website. A dummy auction can be arranged if required.
  • 12. Purchasing Auctions Pricing Options
    • Pay as you go
    • The buyer can purchase individual auctions. Consulting services for complex tenders may be required to train, set up and manage the first auctions. From £3,000 per auction
    • Multibuy
    • The buying organisation can purchase a number of auctions as a package for a
    • set price. The package usually includes support and training for both users and suppliers. From £14,000 per annum for a site licence
    • Commission on the realised savings
    • Purchasing Auctions earns a % of the indicative savings realised at the
    • auction.
  • 13. Resilient Web Hosting
    • El-IDC3 at-a-glance
    • Two independent commercial power feeds
    • N+1 redundancy backup power
    • N+2 redundant cooling system
    • 24/7 monitored fire suppression
    • 24/7 armed security
    • 24” Maxcess raised floors
    • VA-IDC4 at-a-glance
    • N+2 redundancy backup power
    • N+2 redundant cooling system
    • 24/7 monitored fire suppression
    • 24/7 armed security
    • 48” raised floors
  • 14. You can view an auction at: / This clip can be paused and rewound to view the detail
  • 15. Auction Complete – Purchaser View
  • 16. Auction Complete – Purchaser View
  • 17. Audit Trail
  • 18. Audit Trail Detail
  • 19. Why use Purchasing Auctions?
    • We are a small, innovative, hands-on reverse auction provider, bringing considerable experience to the design and functionality of the site. The site has been rigorously tested and proven over 3 years.
    • The Auction tool is standalone, possessing a simple, intuitive interface; thus minimising cost of entry and potential for error.
    • The site functionality and overall transparency promote sound planning, competitive bidding and hence the most leveraged product prices.
    • The Audit Trail data opens a whole new world for negotiation, benchmarking and alternative competitive suppliers in the event of default. Few sites deliver a commitment to price per item.
    • You are in control – You select the vendor based on best VFM.
    • If you are not pleased with the outcome you needn’t pay us . That is Value for money!
    • Why go anywhere else? –
  • 20. Next Steps
    • Should you elect to take your next auction with P Auctions, the cost would be £3000 and would include:
      • Assistance with preparation for the auction.
      • Training for all parties involved.
      • Running the auction to bid matrix stage. 
      • A rider that if you are not pleased with the outcome you are at liberty to ask us not to charge you!
    • Going forward, we would ask you to :
      • Complete an NDA.
      • Complete a simple contract.
      • Give us the contact details of a team member through whom we should conduct the rest of the business.
  • 21. Thank You! To view an auction please go to: / For further information or to discuss different options for your auction please call the team on 0845 603 8161
  • 22. Purchasing Consultancy? Horizon Associates Ltd 145-157 St John Street London EC1V 4PY       07734 671511          [email_address]