1) Cost reduction
Companies can analyze trends in the average daily rates (ADRs) charged by suppliers through publishing a call for tenders on a marketplace. This transparency enables experts offering competitive rates to be found, thereby enabling companies to reduce their costs. A study carried out by LittleBig Connection revealed that customers publishing their calls for tenders on the marketplace have recorded an average 9% drop in daily rates since the platform was deployed.
This is also due to the fact that freelancers who work directly via a platform are subject to one single margin, i.e. the one applicable to the intermediary offering to provide the connection. For LittleBig Connection for instance, the margins in place are transparent, determined in advance by both parties, and set out by contract.
2) Improving on panels of listed suppliers
The marketplace also offers the following benefits for companies wishing to continue working with their existing listed suppliers. Publishing their calls for tenders allows companies to solicit competition in order to improve the quality of the profiles that they receive. Being aware of the prices charged on the marketplace means that they actually obtain significant negotiating levers, allowing them to gain beneficial ADRs or services that are better in quality. This information can prove invaluable, particularly when it comes to renewing an assignment.
3) Access to profiles that are better qualified and more innovative
Publishing a call for tenders on an international marketplace allows companies that are seeking less common expertise to gain access to freelancers from all over the world. Widening their search areas means that companies can increase their chances of finding skilled talent tailored to their specific needs. The LittleBig Connection platform for instance provides access to a global community of 400,000 experts in 18 countries on 5 continents. It is also possible to launch a recruitment campaign covering specific profiles.
The experiences reported by customers of LittleBig Connection, such as a leading manufacturer of sports equipment and a leading construction company, confirm the benefits of using a marketplace. The purchasing department at the first company opened up its calls for tenders to the marketplace, allowing it to reduce the ADR for the freelancers with whom they were working. The second company gained direct access to quality freelancers by avoiding the need to use Digital Service Companies (DSCs), while reducing the commission rates charged by the DSCs at the same time.
In conclusion, opening up calls for tenders on a marketplace such as LittleBig Connection is proving to be a winning strategy for companies wishing to remain competitive in today’s digital economy.