AWMA is pleased to announce a partnership with Category One to provide AWMA members with access to e-procurement solutions previously available only to the largest companies.  Through a reverse auction technology platform, this web-based program facilitates product purchasing in a fraction of the time of a traditional purchasing process and can result in savings of as much as 35% on products that AWMA members purchase routinely for their customers.  

The reverse auction technology is completely a turnkey process – Category One will help distributors determine which products have the greatest potential for savings, then using the distributor’s product specifications, they will line up the manufacturers to bid on the business and conduct the auction.   In a significantly compressed timeframe, distributors have the benefit of receiving up to as many as a dozen bids, reviewing the auction results and receiving a sample of the product for review prior to accepting the auction results.  

According to Scott Ramminger, President & CEO of AWMA, “the reverse auction technology provides our members with a new, alternative way to procure products and potentially realize significant savings.  The business model is such that our members will not incur any upfront costs, they do not need to invest in any expensive software or hardware and best of all the program is completely risk free—distributor members only pay for the service if they save.”  

Historical data shows that items with an annual spend of over $100,000 are typically the most successful for the reverse auction platform.  The types of products that tend to provide the greatest savings include:  Supplies (gloves, cutlery, hot/cold cups, lids, paper goods), Automotive (anti freeze, oil, windshield fluid), Food Products (cheese, juice concentrate, coffee programs), Equipment (ovens, refrigeration, store fixtures), and Packaging (pizza cartons, plastic containers, corrugated paper, pallets, plastic bottles, aluminum cans).  However, Category One will work closely with AWMA members to determine the viability of products beyond those listed above.

“This program can help our members reduce costs and provide competitive advantage – something our members are keenly interested in, particularly during these challenging economic times” Ramminger added.

For more information about this program, AWMA Members should contact Jane Berzan, Vice President of Strategic Initiatives with AWMA at:  jmberzan@cox.net or (703) 517-4752.