Generating Maximum Savings with Reverse Auctions
We are here to introduce you to a better way to bid.
This year, two Stanford professors––Paul Milgrom and Robert Wilson won the Nobel Prize in Economic Sciences 2020 for significantly improving how auctions are conducted. From the beginning, Milgrom and Wilson understood the importance of auctions and knew that designing them in the proper way was absolutely critical. Because of their work, the team at Enviro 21 have the opportunity to provide and conduct better auctions––the reverse auction format.
Let’s elaborate…
Reverse auctions are not a temporary approach for procurement operations but a proven method to dramatically lower your overall procurement costs, which delivers significant cost savings. In a reverse auction setting, a buyer makes vendors (or sellers) aware of their intent to purchase a good or service. Throughout the course of the reverse auction, vendors bid against one another to secure the buyer’s business by continually bidding the price of the good or service downward. The winning bidder is the seller who offers the lowest price.
This leads us to the core benefit of reverse auctions: SAVINGS
With multiple sellers competing against one another to win the bid and secure their next project, pricing is a significant factor in the decision-making process—and typically, this results in the buyer getting a better deal than anticipated. According to the U.S. General Services Administration (GSA), reverse auctions have become a best practice in the procurement process by producing savings of 10-40%. If you are looking to save on your next hard-good or service contract, you are in the right place.
At Enviro 21, our online marketplace delivers the best available pricing and side-by-side bid comparisons for public and private sectors including municipal solid waste, paving, demolition, hazardous waste removal, fleet vehicles, electronics, and more. Even better? We allow our clients to set the maximum cost they are willing to pay.
Leave the antiquated procurement process behind. Be in control and save with Enviro 21.