We recently went to Brussels to meet Pierre-Édouard Labbé, CKS Auctions Manager, to discuss reverse auctions.
An innovative approach that is already transforming the way Procurement organizations handle this process.
Hi Pierre-Edouard, could you present yourself to our readers?
Hello, I graduated from the business school HEC Paris and Sciences Po Paris in 2012 and I am currently the Brussels-based manager of CKS Group’s Benelux and Auctions activities.
Over the past five years, I have helped many procurement organizations around the world in designing and implementing their procurement strategy. In particular through procurement information systems and reserve auctions (administration of 1000 reverse auctions per year).
I have an international expertise in the field of online auctions especially, but I am also keen on other topics such as the purchasing organization audit, supplier risk management, negotiation, and contract management.
Could you define what do you mean by “reverse auctions” and how does it work?
A “reverse auction” (also called e-auction) is a tool in the hands of an experienced buyer who is fully literate in the RFQ process. It allows him or her to negotiate in a faster and fairer manner the best possible prices. We call it reverse because, in this B2B process, the role of the buyer and seller is reversed, with the primary objective to compete for purchase prices downwards.
By using Ivalua Buyer’s Platform among other technologies, we help the buyers to choose the right auction strategy based on the context, the constraints and the risks related to the call of tender and the Procurement. Indeed, we work in partnership with the buyers in order to bring our expertise and eAuction platform. We set up and monitor the auction for the buyers according to the tender information. We do train the suppliers in all the languages possible to make them comfortable with the eAuction platform. We actually are a trusted third party for our clients and the suppliers and this makes a difference.
What are the main benefits of this approach compared to traditional ones?
Thanks to the reverse auction, on one hand, the buyer can obtain immediate savings by taking the most from a competitive situation and by getting the best offers from your suppliers. On another hand, the suppliers develop business opportunities (long-term (e.g. 2-3 year) contracts, more focus on total costs). For both, the reverse auction will drastically reduce the negotiation cycle time and allow them to enhance the transparency into negotiation.
How can a company start using reverse auctions?
When you get the most actualized commercial offers from the suppliers which match with the (technical) requirements of your tender, at this point, the company can start using reverse auctions. In partnership with the buyer, CKS Auctions will define the right auction strategy to maximize the savings.
Your team is organizing a webinar in the upcoming days, could you tell us more about it?
Yes, CKS Auctions is launching a webinar session to discuss the benefits of using e-auctions as a procurement strategy. During this webinar, several study cases based on real-life events will be presented and a procurement professional from the automotive industry will share his experience with CKS. We will explain the auction process from the first contact with a buyer until the auction results. Through the auction presentation, we will answer all questions!
If you want to register for the webinar, please click here.
