General Procurement

Through the use of its sophisticated procurement technology platform and services, Procurex assists organizations of all types and sizes in saving time and money as well as improving procurement processes.

If your organization is planning a large purchase or requires ongoing assistance with its procurement strategy, Procurex can help.

Finding the right category is often the first question asked when discussing how to integrate Reverse Auctions into your procurement strategy and why Procurex offers below a sampling of some of the best categories for use of reverse auctions. Procurex has conducted more than 35,000 e-sourcing events and managed more than $37Billion in spend through our platform - with documented savings north of $7Billion - providing a wealth of knowledge on the best categories and opportunities to cut costs through the use of our world class platform.

While this is by no means an exhaustive list of categories, these spend categories offer great savings potential.

General Procurement Categories

Opportunities abound in the general procurement category, as long as you can develop a specification that allows for competition, have more than two suppliers, and a forecast for volume/requirements many general procurement category will work.  Here are just a few great examples…

  • Transportation/Fleet Vehicles – One time purchases of fleet vehicles or transit buses are high quality auction items.  Procurex can help with specification creation to ensure that a maximum number of suppliers can participate in a vehicle auction, maximizing savings potential. (Procurex has beat state contract pricing by more than 11% via the use of our reverse auction platform)
  • Capital Equipment – Capital equipment whether large AC coolers or outfitting a commercial kitchen, are often large dollar spends and as such generate solid competition amongst suppliers.  These can be great reverse auction targets.
  • Office Supplies – Every business uses them and generally uses a lot of them.  While only a few key suppliers are supporting this category, they are often aggressive and highly competitive.  Procurex has conducted hundreds of auctions within this category, from several hundred line items to just ink and toner and can help you manage this category to great savings. (Recent ink and toner auction saved nearly 20% over previous annual costs!)
  • Janitorial Supplies – Another general procurement category that takes significant budget annually and Procurex has developed sophisticated lotting strategies that allow us to take hundreds of line items of janitorial supplies and distill them into an auctionable lot…generating cost compression and savings. (Procurex helped one Midwest organization save 14% per year on their janitorial supplies)
  • Rock Salt/Ice Melt – Saved 12%+ on this annual usage commodity for an aggregation of clients.

Technology Categories

When we speak with Procurement executives about priorities and spend management, IT spend often tops the list of departments where Procurement would like to have a stronger hand in managing spend.  Procurex has worked with leading organizations to tap into IT spend categories, often with fantastic results.

  • Computers/Hardware – IT spends often make up a significant part of an annual budget, and laptops, desktops, servers, peripherals and other IT hardware represent fantastic savings opportunities.  This requires a commitment to getting the specification right and often is a two-step process, with step one a supplier vetting and quality control process and step two the pricing/reverse auction process.  (Procurex saved an Ivy League University more than $530,000 per year on their computer purchases)
  • Software/Licensing – From Microsoft and Adobe to McAfee and Quicken, these licensing agreements are most always sold through Large Account Resellers (LARs) and as such can be a great way to leverage auctions to generate savings.  (Procurex worked with a Texas institution to save more than 10% on their software licensing agreements)
  • A/V Equipment – Whether you are outfitting a new building or replacing antiquated equipment, A/V spends can escalate quickly.  Given the highly competitive nature of this category and the variety of suppliers available to purchase from, we have seen this product great results via an auction process.

Service Categories

Long term service contracts have often been overlooked as reverse auction targets due to the evaluation components of the awards.  Procurex has worked with leading procurement organizations to define processes that allow us to weight non-price variables while still factoring in pricing via a reverse auction model…net result is our clients are landing at the best value vendor at the best price.

  • Waste Hauling Services – Waste hauling services has become a go to category for savings through the use of reverse auction.  Often highly competitive as well as highly priced, this category has become a must in using reverse auction technology.  (Procurex saved a NYC organization more than $500,000 or 25% savings over their previous waste hauling contract)
  • Landscaping Services – Landscaping services are often locally provided services with highly competitive suppliers.  When dealing with larger corporate campuses or multiple locations, these services can quickly escalate in costs.  Creating a level playing field specification is a key to success on running this category and where Procurex’s experienced operations staff can aid you in building a specification that works for auctions and cost compression.
  • Guard/Security Services – Outsourced guard and security services has become another service category with high competition and solid savings results.  Procurex again works with our clients to craft a specification that allows for the greatest degree of competition and savings.  (Procurex worked with a California institution to save more than 12% on their annual guard services contract)
  • Managed Print/Copier Services – One of largest shared services spend categories resides in printing services, and Procurex regularly works with our clients to clearly define printing and service requirements, vet supplier qualifications and conduct reverse auction events on this high profile category. (Procurex partnered with a major California institution to save more than $1Million on a three-year service contract)

Energy Categories

Across the past 6 years, no category has gained more reverse auction momentum then Energy! With expanding deregulation (this will vary from state to state), increased competition and highly variable commodity markets at play, you need to have an energy expert to help guide decision making on these challenging categories.  Procurex brings both energy market knowledge/consulting as well as a specially designed energy auction platform to maximize savings in energy categories.

  • Electricity – Across the Midwest, East Coast and South, many states have deregulated power purchasing and forward hedges on electricity are now the norm for large energy users.  Procurex’s state of the art energy procurement platform takes this large energy purchases and provides transparency to the purchase process, saving money along the way.  (On average Procurex saves our clients 5%-10% on power purchases!)
  • Fuel Oil – From #2 - #6 fuel oil and even jet fuel, we have you covered.   Procurex works with local and national suppliers to help you manage your fuel oil requirements.
  • Natural Gas – Natural gas deregulation is further along than electricity and most every state in the US has some form of open markets for natural gas. Procurex has built very strong supplier relationships with both local and national natural gas providers and has been called out as the ‘reverse auction platform of choice’ by many of them. (Procurex worked with a Northeast Institution to save 11% on their annual natural gas purchase – and we regularly aggregate multiple institutions to build buying groups for natural gas and electricity…increasing savings potential)