The 7C's Cheat Sheet

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The 7C's Cheat Sheet by David Bush April 25, 2007	Go Back

Many people often wonder (especially eSourcing newbies) what the criteria are for a good reverse auction sourcing event. Since billions and billions of spend are negotiated through reverse auction technology every year, these rules have been developed and refined over time. Honestly, I do not even know the origin of this list or any of the changes it may have gone through over time. I suspect this was some of the original FreeMarkets marketing collateral that could fill an Olympic sized pool. I do know that I have seen it around enough to consider it public domain.

The 7Cs Category Cheat Sheet

1. Contractually available
2. Clearly definable requirements
3. Competitive supply base
4. Commercially attractive spend to bidders
5. Compressible margin
6. Complete data set
7. Commitment to process

These are all very good points to address in your decision process. #2 and #3 are probably the most important to understand and account for, www.esourcingforum.comas I have stated before. I strongly feel that #5 (Compressible margin) is an admirable but not required goal. Achieving price transparency in rising market conditions is just as successful as getting 14% on your office supplies event. At one point or another, you will be required to focus on these 7 concepts and the amount of savings which is captured and implemented will be directly correlated to the adherence of these rules.