Bidding, quoting and reverse auctions—is this the wave of the future?

Bidding, quoting and reverse auctions—is this the wave of the future?

data-generic

Strategic Sourcing: Now playing in a theater near you. We have gotten so tech-focused, with sophisticated software, aggressive purchasing groups and an app for everything, that personal communications suddenly appears to be less important. It is now evident that experienced vendor relationships are slowly being diluted. Have we gotten to a place where relationships have little or no place in fleet management? Where we are bidding for everything? Is bidding a style that now has become commonplace and more exciting or is it a lack of social skills forcing the new wave of negotiating?

I’ve always thought that part of being successful was the ability to have relationships, leverage contacts and learn together. In my experience, this is all more important that filling out an Excel sheet bid box. In the past, you would discuss what was going to be quoted and understand all the needs and potential gray areas that could put you in harm’s way. Then you would place your bid for parts, services or contracts and provide those in a winner-take-all type program. You had only one shot, and you had to make it your best.

But now the rules have changed: you bid online with three round re-bid opportunities to change your price. It’s more of a reverse auction than a bid process. And these over-sophisticated programs to take bids are usually managed by non-industry type younger generation app managers. Once the bids come in and they are reviewed, then emails suggest where you may be high–my guess is you are never told where you are low. The third round to get your bid right for final submission. Of course, this is all after the request for information (RFI), request for proposal (RFP) and request for quote (RFQ), meaning lots of time back and forth through email and Excel sheets.

Along with this new method, there are some new questions that require answers that I have seen in this process. I have seen questions that I would consider not relevant and, quite honestly, none of their business and not relevant in buying brake chambers. This ranges from wanting a copy of the company’s P&L, business statements, personal guarantees, where you get your parts from and what you pay for those, and what you pay for your vehicle’s components.

So is this the wave of the future? Will this new process render long-standing relationships irrelevant? Is the aggressiveness of a wannabe new player more important? Does this eliminate a business relationship of, say, 10 years of loyal service? Where is the box to check for that on these automated bid programs?

The newer generations that build “relationships” through Facebook or Twitter with no direct, face-to-face contact say that business is business. But, without personal relationships this business could start to get pretty cold.

You May Also Like

Merchants Fleet hires AI expert Suzannah Hicks

Merchants Fleet says Hicks will work to implement AI-driven solutions to optimize operations, enhance efficiency and drive cost savings for the company and clients.

Merchants-Fleet-hires-AI-expert-Suzannah-Hicks

Merchants Fleet announced the addition of Suzannah Hicks, an AI strategist who will lead the Merchants’ first company-wide AI strategy.

"As the fleet management landscape continues to evolve, it's imperative that we stay ahead of the curve and leverage the latest technologies to drive value for our clients," said Ben McIntyre, vice president of enterprise solutions and architecture at Merchants. "Adding an AI expert of Suzannah’s caliber reflects our dedication to innovation and underscores our commitment to delivering unparalleled fleet solutions."

Noregon adds Fault Guidance, bi-directional testing to JPRO

The new JPRO update also includes an optional Technician as a Service (TaaS) add-on.

Noregon-JPRO-update
Powerfleet, MiX Telematics approved for business combination

The combination is expected to be complete in the first week of April, after which the businesses will be branded as Powerfleet.

Powerfleet-x-MiX-telematics-integration
Scania speeds up autonomous transport pilot program

Equipped with Plus, Scania has been testing its trucks in Sweden since 2021 — now it plans to expand operations throughout Europe, this year.

SCANIA-Logo-vector
IRS clarifies: RNG cleaning and conditioning equipment eligible for tax credit

RNG Coalition notes a correction to an investment tax credit proposal regarding RNG cleaning and conditioning equipment.

RNG-Coalition-logo-ITC-technical-correction

Other Posts

PrePass comes to four new states, adds 116 sites

With this expansion, the PrePass Safety Alliance says fleets with the PrePass app now have 20 percent more bypass sites nationwide.

PrePass-logo-large
How fleet management tools can help increase fuel efficiency

From fleet cards to EVs and data, all work together to help save on costs.

generic-fuel-efficiency-fleet
Careful considerations for new EV landscape

Ryder released a whitepaper to help customers make informed EV decisions, including assessing fleet needs and calculating cost.

EV-uncertainty-questions-electric-generic-charging-fleet-infrastructure-truck
Stellantis and UFOFleet form partnership

Stellantis says it chose UFOFleet for its proven customer experience, flexible technology and deployments with leading global brands.

UFO-Fleet-Stellantis