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Savings made as suppliers compete in e-auction

28 May 2009

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Online auctions that involve suppliers competing for public sector contracts have enabled organisations to make substantial savings, it has been revealed.

The government’s leading procurement body, Buying Solutions, recently organised 12 e-auctions across a range of products and services, including mobile solutions, IT hardware and furniture.

It found that public sector organisations managed to make savings of up to 29% through the use of e-auctions, backing up a recommendation by the Treasury’s Operational Efficiency Programme for their increased use.

E-auctions work by having suppliers fight to lower prices as they compete against each other to win contracts. This approach has been shown to help drive down costs and create better value for money for the public sector.

One of the 12 e-auctions, run by North Yorkshire County Council, created savings of 29% on the last purchased price for the equivalent service.

Rob Knapman, Buying Solutions’ e-commerce director, said: “This innovative approach to e-auctions allows customers to benefit from Buying Solutions’ unique position as both an expert in e-procurement and a provider of value-for-money framework agreements.”

Copyright © Press Association 2009

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