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| Q: Our pricing is already good, so why should I run an auction? |
All of our clients, past and present, enjoy lower costs or better service because they ran an auction. Contract rates for telecommunications services have been in such a rapid downward spiral that we see precedent-setting deals with every new client.
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| Q: Our internal team has negotiated contracts for years, so why pay an outside firm to do what we are paying our own staff to do? |
Our eProcurement solution is intended to assist, not to replace anyone.
While your internal team is working on several projects, telecom procurements are probably not their specialty since contracts usually renew every two or three years. The complex nature of carrier pricing and tariffs often make it difficult to understand or obtain best in class pricing.
Our team spends every day focusing on communications procurements. Since we’re completing auctions on a regular basis, we know what best in class rates and terms the carriers are offering. We can then apply this knowledge to your benefit.
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| Q: Which vendors participate in the ICM eProcurement auction? |
AT&T, Verizon, Sprint, Global Crossing, Telstra, Qwest, T-Systems, and dozens of others.
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| Q: Do I have to change carriers? |
No. You decide who is invited to bid during the auction. At the close of the auction, the choice of who you contract with is entirely up to you. You are not required to choose the lowest bidder.
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| Q: Do the vendors approve of the process? |
Vendors are willing participants in the ICM eProcurement process.
Bidding for large-scale projects is a time consuming process for vendors; Avotus WebAuction is not labor intensive. It also saves the vendor hundreds of man-hours for each RFP.
Since bidders can view their relative rank against other bidders, they get immediate feedback on how they are faring during the entire process. This gives them the opportunity to change their bids to win the business.
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| Q: What if a vendor doesn't bid via the auction? |
If a vendor chooses not to bid, you may award the business to the best overall bidder or choose to award it to a non-bidding vendor. Your company is under no obligation to award business only to an auction bidder. Avotus provides objective recommendations based on the auction outcome, but you make the final decision.
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| Q: Can we select the vendor account team we want to bid on our services? |
Yes, you are the customer. Just let Avotus know which representatives you would like and they will be invited. It is then up to the vendor to fulfill the request.
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| Q: Will an auction jeopardize the good relationship that I have with my vendor? |
Not necessarily. Avotus certainly understands the importance of working with a vendor you trust and maintaining a mutually beneficial relationship. However, we believe you can maintain or increase your level of service while significantly reducing cost by using ICM eProcurement.
Many of our clients enjoy being one step removed from the vendors during the RFP, as it allows them to have Avotus be the “bad guy” and enforce the rules of the RFP thereby preserving their good relationship.
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| Q: Does the auction include both Voice and Data rates? |
Yes. The auction encompasses any telecom services you would like to have included.
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| Q: My contract negotiations include more than rates. What about T&Cs and SLAs? |
Avotus WebAuction acquires critical information on the terms, conditions and service level agreements relevant to your company's particular needs or requirements.
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| Q: Is your process proven and can you provide references? |
Yes. We have documented many successful case examples. See our success stories page for more information.
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| Q: Are the auctions secure? |
Yes. Only Avotus, invited vendors, and your company's Auction team will have access to the auction.
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| Q: How is the RFP created? |
The RFP is created electronically by choosing categories, subcategories and questions from our database.
Items specific to your company's requirements may also be part of the RFP.
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| Q: How do clients view the WebAuction responses once they are submitted? |
The auction site displays summary information on the bids as well as details of the bid responses. You access this information through links provided on your custom site. The site updates continuously as new bid information is submitted.
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| Q: Can my staff watch the auction in progress? |
Yes, you have access to your auction site throughout the auction period. This allows you to view an executive summary of results that automatically updates each time a vendor enters new information. You also have access to several histograms charting the progress of bids, as well as detailed reports on all the bidder responses to items and questions bid on. If you choose to be on the auction email alias, you are notified each time a new bidder enters the auction or commits a bid.
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| Q: How long will the WebAuction take? |
A typical auction is open to the bidders for ten to fifteen days. You may choose to run your auction longer than this if you wish. You may also include overtime periods or extensions in your auction.
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| Q: How do bidders gain access to the WebAuction? |
The bidders you select to participate in the auction will be sent a URL, RFP Name, User Name, and Password to access your auction site.
Bidders must accept a Letter of Intent and sign a Non-Disclosure Agreement to gain access to the auction.
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| Q: How do I obtain results of the WebAuction and interpret the bids? |
The results of the auction are accessed on the auction site in real time, in an easy, readable format. Avotus consultants are also available via telephone, e-mail or in-person to discuss bid results.
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| Q: How long until I start to see a ROI from the auction fee? |
The average ROI period is two to three months, depending on the savings and payment plan that your company chooses.
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| Q: Does Avotus guarantee its ROI predictions? |
Avotus does not guarantee ROI predictions, because we cannot predict a carrier’s actions. But, we have a proven track record of meeting or exceeding the savings we predict in our contract recommendations. Our ICM eP WebAuctions have proven to save our clients between 25% and 50%.
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| Q: We have legal counsel reviewing our contracts. Why use Avotus? |
Though your legal department may have a certain degree of telecommunications expertise, we find that specialized consulting is required to achieve the appropriate terms, conditions, service levels, and particularly pricing for these types of contracts. In fact, several of our clients are well-known law firms.
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| Q: What if I'm already in a contract? |
Every one of our clients is already in a contract; that is the nature of this industry. There are ways of renegotiating contracts while still honoring all of your obligations because carriers do not want to lose your business and are always interested in gaining more.
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| Q: What if our contract terms will not enable us to renegotiate? |
This happens in rare cases. However, almost every contract can be improved in the client's favor. We also specialize in creating strategies for contract remediation and can review your situation to determine what approaches are possible.
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| Q: How do I know if our contract can be remediated prior to the actual contract termination date? |
We can review your contract for a nominal fee, and advise you on your legal obligations as well as areas where your contract may be improved.
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| Q: When is the best time to renegotiate a contract? |
Mid-contract is an acceptable time to start the renegotiation process. Anything less than six months left we consider to be an emergency, as you need to be able to convince your carriers (with our help) that you would be willing, and able to move away from your incumbent carrier if their bid is not compelling. With zero days left on your contract, your carrier knows that you really cannot afford to leave them.
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| Q: We are going through acquisitions and mergers. Shouldn't we wait to run an auction until after we're finished? |
| One of the best times to renegotiate contractual arrangements is when you are acquiring or merging with other companies. Your ability to offer larger total volumes of traffic to the carriers acts as an incentive for them to offer you better rates if you are in a position to take advantage of consolidating your contracts. Without a thorough contract review, you could also find that your current agreements are in conflict with those of the merging or acquired company. |
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