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Sunday, 20 July 2008
 
 

How the "Profit Leverage Effect" Works When Using Reverse Auctions

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How the "Profit Leverage Effect" Works When Using Reverse Auctions

Over the past year we have been hearing how companies are losing money and the only way they can survive is by cutting labor costs. This means more and more people are losing their jobs because their company cannot afford to pay their salaries. In industries where a large percentage of their outward cash-flow is to pay for materials that go into their final product, they are better ways to save money than to cut labor costs. This where strategic sourcing can have the greatest impact in hard dollar savings, process efficiencies and quality improvement for companies that are willing trust the process. This article will only focus on one portion of strategic sourcing called reverse auctions.
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