Online auctions save Cancer Research £2.5m a year

Cancer Research is using online auctions to cut its procurement bill by over £2.5m a year.

The UK cancer charity is using the auctions for the purchase of office supplies, IT hardware and laboratory consumables.

The first online auction for office supplies delivered 30 per cent savings, followed by an auction for the purchase of PCs and laptops that resulted in savings of 20 per cent. Another auction for chemicals, plastics and protection equipment saved the charity 33 per cent on its usual purchasing bill.

Cancer Research opted for online auctions as part of an organisation-wide initiative to cut the charity's £130m annual procurement budget.

Belinda Turner, procurement director at Cancer Research UK, said that initially there was some scepticism about the level of savings online auctions could deliver.

"Now with three projects under our belts, we are convinced that this approach is extremely valuable. As a 'not for profit' organisation, we must ensure our costs are managed as tightly as possible so that the maximum funds are spent on our research into fighting cancer," she said in a statement.

The online auctions used by Cancer Research are being managed by procurement consultants Aria Insite and specialist vendor Vendigital.

Cancer Research is now planning a fourth online auction at the end of August for the procurement of molecular biology supplies.