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Via the lightxchange, trading partners can conduct business more efficiently and less expensively.
The following business processes are supported by lightxchange:
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A Request for Information (RFI) is a public invitation to suppliers to provide information on materials, products or services needed by the requesting company. An RFI is a means of collecting general product/service information from potential suppliers. lightxchange is used to create a wider reach and to generate more efficiency for both, suppliers and buyers, throughout the RFI process.
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Searching for potential suppliers is one of the most time-consuming and, therefore, most expensive steps in the procurement process. The buyer sends out a Request for Proposal (RFP) or Request for Quotation (RFQ) to pre-selected suppliers. After suppliers submit competing offers, the buyer selects the winning offer, and sends a purchase order to the respective vendor. The RFP/RFQ workflow has conventionally been accomplished by fax or letters. This exchange of documents can be electronically enabled through lightxchange. In addition, lightxchange offers wider reach and faster communication.
Buyers post their template for a quotation on lightxchange and invite selected suppliers via automated email to make a quotation that cannot be seen by other suppliers. lightxchange offers software tools to evaluate and compare the posted quotations. The actual contract and additional factors of delivery, payment and service are negotiated externally to lightxchange, if they were not part of the requested material/service itself.
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A Reverse Auction is the opposite of an auction from the perspective of a buyer. A buying company has a specific demand of a usually standardized material. After the reverse auction has started, suppliers quote competitively for supplying the needed product or service to the buying company.
Reverse Auctions can be open to all potential suppliers (open auction) or closed, i.e. the buyer invites selected suppliers to join this reverse auction (sealed auction). In this case, the buyer selects only those supplying companies, that he or she believes will be able to meet the required demands in terms of quality, quantity and price.
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