How does a Negotiation platform work?

The negotiation / RFQ auction model can provide buyers with an efficient and transparent way to negotiate prices and terms with suppliers for goods or services

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Understanding the Negotiation / RFQ trading mechanism

The Negotiation / RFQ trading model is typically used in B2B procurement to negotiate prices and terms with a number of potential buyers or suppliers simultaneously.
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A Negotiation / RFQ platform simplifies the vendor selection process; enabling efficient, informed and objective procurement decisions.

The process:

Step 1

Trade set up

The lister defines the attributes they want to buy or have for sale. Elements that are flexible are flagged as "Negotiable". The listing is then published on the marketplace and potential buyers or suppliers are invited to participate.

Step 2

Supplier registration

Interested parties register on the platform, providing any necessary information and documentation, such as may be required for "Know Your Customer" (KYC) or anti money laundering (AML) legislation.

Step 3

Negotiation process

Once the initial offers have been made, the lister can enter into structured, real-time negotiation on the platform with one or more bidders, until a mutually agreeable deal is reached.

Step 4

Auction closure

When negotiations have concluded, the lister selects the offer or offers that best meet their requirements. The winner or winners are notified and the transaction takes place.

Step 5

Post-trade

After the negotiation is over...such as payment processing, delivery tracking, supplier rating and reviews and performance evaluation.

Why Negotiation / RFQ trading?

The digital Negotiation / RFQ trading platform simplifies vendor selection and procurement; enabling buyers or sellers to negotiate concurrently with multiple parties, to identify the best match to their needs at a mutually agreeable price.