document: Expert advice - how can my organisation take advantage of reverse auctions without jeopardising existing supplier relationships ? In a recent survey , AMR Research found that companies that use reverse auctions to negotiate prices with suppliers typically achieve savings of between 10 % and 15 % on direct goods and between 20 % and 25 % on indirect goods , and can slash sourcing cycle times from months to weeks . Suppliers , however , are less enthusiastic . They believe that these savings are achieved only by stripping the human element out of negotiations and evaluating bids on price alone , which drives down their profit margins . As a result , reverse auctions carry the risk of jeopardising long-term and trusted relationships . Suppliers that have not been involved in a reverse auction before typically fear the bidding event itself - arguably the most theatrical and , therefore , most hyped-up part of the process . Although it may only last one hour , weeks of preparation go into setting up a successful bidding event
doc_bio_tags: O O O O O O O O O O B I O O O B I O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B I O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B O O O O O O O O
extractive_keyphrases: reverse auctions supplier relationships preparation
abstractive_keyphrases: request for quotation