"No economic change has been more pervasive than the subtle shift in economic power from the producer to the customer." Peter Drucker, 1995

And this was when reverse auctions were still a glint in Jack's eye. The advent of on-line auctions that allow buyers to employ market pricing to drive down the cost of a sourcing decision has added a new dynamic to the buyer - supplier relationship. As a result supplier managers are even more challenged to avoid relying on price to differentiate their product or service; instead to be more creative in developing options and understanding the dynamics of the electronic auction as a tool in the sourcing process. The mission of this workshop is to equip suppliers with insights to the buyer's process, and strategies to use before, during and after the auction to maximize the supplier's results. Because of the sensitive nature of these skills and techniques, we do not offer any public courses on this subject.

Objectives - At the end of this workshop participants will be able to:

1. Describe the e-sourcing process from the buyer's perspective and how to match the buyer's knowledge of price and market conditions

2. Develop a "game plan"

• Craft a business case for the sourcing
• Focus on the three "bottom lines": gross/net profit, ROA, cash flow
• Equip the auction "war room" to monitor the auction and have the right people on hand
• Know what tradeoffs are reasonable and when to walk-away from a deal
• Deal with the emotional "rush" of online bidding
• Develop an after auction strategy
• Explain close of auction price vs. close of transaction price

3. Differentiate during the bidding process with value added deliverables and options; know when to withdraw from bidding

4. Use competitive intelligence during the auction:

• Strengths and weaknesses of competitors
• Competitor's strategies

5. Explain the auction dynamics based on viewing buyer's auction screens

6. Experience an auction in a role play situation

7. Present an action plan: apply principles to a current auction opportunity