iSolar Exchange Rolls Out Advanced eProcurement Sourcing & Management Systems for the Solar and Renewable Energy Industry
The iSolar Exchange eProcurement Modules offers purchasing professionals two new distinct procurement formats, the classic "Competitive Sealed Bid" and the new dynamic purchasing model, the "Reverse Auction". iSolar Exchange is the first global eSourcing platform for renewables, open for everyone up and down the supply chain.
iSolar Exchange saves time, increases efficiency, expands supplier access, and facilitating decision-making. Unlike traditional sourcing methods, like calling up each supplier one after another with a request for quotation, e-procurement automatizes the process allowing the buyer to contact multiple suppliers simultaneously with pre-designed specifications and produce a wealth of cost-saving options.
Today there are thousands of companies around the world manufacturing, distributing and installing solar products. The industry has a vast over-supply of PV modules and other components, up to a two-year supply sitting in warehouses around the world. Distribution and market channels are disconnected and fragmented. Government policies changes with FIT's and rebates on Solar have forced supplier to find and enter new global markets, an expensive process.
Online eSourcing offers buyers an opportunity to capitalize on large savings resulting from intense competition between suppliers. Some academic studies have shown that firms employing e-procurement solutions have been able to save 8-20% on average.
According to Founder Michael Gumm, "Savings do not end here. Large companies in other industries with significant bargaining power have been able to leverage their scale to their advantage. General Electric, Quaker Oats, and Target have all been able to save millions of dollars on their procurement costs using eProcurement systems.
iSolar Exchange is the first global eSourcing platform for renewables, open for everyone up and down the supply chain".
The iSolar Exchange eProcurement Modules offers purchasing professionals two distinct procurement formats, the classic "Competitive Sealed Bid" and the new dynamic purchasing model, the "Reverse Auction".
Buyers using the "Competitive Sealed Bid" and "Reverse Auction" can choose either the public bid viewed by the general public or a private closed RFP. Only invited suppliers are aware of and able to bid on the project. Buyers have the ability to pre-qualify new suppliers or to choose from a set of existing suppliers before sending an invitation.
The "Competitive Sealed Bid" is the traditional competitive low sealed bid system most us of have used on school, institutional, corporate and government projects.
The system is simple. Buyers creates a RFP with scope of work, project or product specifications, drawing, details, photos and contract documents. Suppliers or contractors can submit one bid sealed until after the bid closing time and in most cases, the bid is awarded to the lowest bidder. Buyers publishes his RFP's plans, specifications and other attachments online and these can be downloaded and printed out. This alone saves the cost of printing and distributing plans and documents.
The Buyer creates and posts the RFP for a review period and sets up a time for bid starting and closing. Bid times can be modified and addendum can be published. Questions and answers can be published in a RFP specific forum for communications between suppliers and buyers. Suppliers can submit "one" bid, and the online procurement system will award the project to the low bidder. Sealed Bid is design to meet most corporate and government legal requirements.
The "Reverse Auction" is different; the closest real world analogy to the Reverse Auctions is a form of real time price negotiations between many suppliers and a Buyer.
In the "Reverse Auction", the Buyer creates a Reverse Auction RFP, and uploads all the information and specifications. The Buyer also creates a maximum price ceiling on the "Reverse Auction" and this is the maximum price he will pay for the RFP. The ceiling price is typically based on preliminary pricing, or other current market pricing.
The "Reverse Auction" is in effect a Buy-Out RFP. Suppliers find the price point to start their bidding under the Buyer's ceiling price. All suppliers pricing is viewed by all bidders, and the prices go down until the low price point is reached at which time the Procurement system awards the bid to the low bidder. Reverse Auctions help ensure that you achieve true market pricing for any goods or services in the shortest time possible.
iSolar Exchange's forward and reverse auction capability is straight forward, robust, easy to setup and can manage virtually any bid template need – from standard commodities to complex total cost of ownership formula-based purchases.
iSolar Exchange is a global eSourcing Channel Platform for renewable procurement professionals. iSolar Exchange offers a number of advanced buying and selling options, including the ability to create public or private trading events. Private trading events feature the ability for buyers or sellers to create their own private business network exchange.