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The Evolution of Bidding: From Ancient Auctions to Modern Algorithms

17/01/2023

In today’s fast-paced and highly competitive business environment, hardware companies are constantly looking for ways to reduce costs and improve the quality of their products. One effective way to achieve these goals is through the use of a vetted network of suppliers for mechanical custom parts. Bidding between these suppliers can help hardware companies get more competitive prices and higher quality parts, ultimately leading to increased profitability and customer satisfaction.

From ancient civilizations to modern times

The use of bidding mechanisms has been a key factor in shaping the history of mankind. From ancient civilizations to modern times, bidding has been used as a tool to allocate resources, make trade deals, and secure contracts.

In medieval Europe, bidding was used as a way to allocate resources and make trade deals. For example, in the Middle Ages, lords and kings would use bidding to allocate resources such as land and serfs to different regions. This helped to ensure that resources were distributed fairly and that everyone had access to the resources they needed. Similarly, in medieval Europe, bidding was used to secure contracts for the construction of castles and other fortifications. This ensured that the best builders and engineers were chosen for the job, resulting in high-quality structures that helped to protect the kingdom.

In modern times, bidding is used in many different industries to secure contracts and allocate resources. For example, in the construction industry, bidding is used to secure contracts for the construction of buildings and other structures. This ensures that the best builders and engineers are chosen for the job, resulting in high-quality structures that stand the test of time. Similarly, in the oil and gas industry, bidding is used to allocate resources such as drilling rights and oil leases. This ensures that resources are allocated fairly and that everyone has access to the resources they need.

Benefits of Bidding Between Suppliers

One of the main benefits of bidding between suppliers is that it allows hardware companies to get the best possible prices for their mechanical custom parts. By soliciting bids from multiple suppliers, companies can compare prices and choose the most cost-effective option. Additionally, the competition among suppliers can lead to lower prices and better deals for them.

Another key benefit of bidding between suppliers is that it can improve the quality of the mechanical custom parts. Suppliers will be motivated to produce high-quality parts in order to secure future business. This results in better quality parts that are less likely to fail or cause problems during the assembly process.

Bidding Models Have Always Worked. Now They’re Our Only Option for Prototyping and Production.

The manufacturing supply chain has always used bidding as a way to ensure competitive costing. It allows a set of qualified suppliers to compete on manufacturing capacity, delivery time, and price.

At most tech companies, bidding is part of their protocol for prototyping and production. Why? Proper bidding can cut the prices of custom manufacturing in half while maintaining a high level of quality. Our sources estimate instant quoting algorithms ultimately can result in custom manufacturing that’s twice the cost of proper bidding.

ManuFuture’s match-and-bid algorithm has produced custom manufacturing bids with even more dramatic cost savings, between 200% and 400% in some examples. Our platform focuses on achieving optimal bid results, requiring all bids to be anonymous and independent. It matches the supplier’s manufacturing capabilities, lead time, and total cost while offering a true “apples to apples’ ‘ comparison between bidders.

Why Bidding is Outperforming Automated Quoting in the New Normal

Bidding models are currently outperforming instant automated quoting for the following reasons:

  1. Cost structures vary. Suppliers will always have different cost structures depending on their geographic location, the company’s size, and machining capabilities.
  2. Availability trumps everything. The availability of raw materials and manufacturing capabilities overcome theoretical costing. Even if a factory is bidding with lower margins, it’s likely being underutilized.
  3. The cost of a vendor’s learning curve. Every vendor assesses risk differently and, as result, experiences their own learning curve costs.
  4. Manufacturing expertise. Just because a company receives an enticing, lower priced bid doesn’t mean the supplier is an appropriate fit for the job. A smart match-and-bid model algorithm finds the most fitting suppliers, submits their price, and bids for every job the system offers them.

ManuFuture Platform

ManuFuture helps hardware companies with the mechanical procurement process, from production files to delivery of the parts. We help hardware companies get the jobe done by source relevant suppliers from a global vetted network, allowing them to easily solicit bids and compare prices. The platform also has a range of tools and features that make the procurement process more efficient and streamlined, such as automated RFQs and real-time tracking of orders.

Conclusion

In conclusion, using a global vetted network of suppliers for mechanical custom parts and bidding between them can be a highly effective way for hardware companies to reduce costs and improve quality. By taking advantage of the competition among suppliers, companies can secure better prices and higher quality parts. Platforms like ManuFuture can further facilitate the procurement process, making it more efficient and cost-effective for hardware companies.