Livestock and poultry producers now have more control when buying bulk feed ingredients with the Reverse Auction service from Feedpail.com, the online feed ingredient marketplace. Feedpail.com was just launched in the spring of 2012 and has already established itself with a large network of feed ingredient buyers and suppliers. Now Feedpail.com is rolling out a new Reverse Auction service that will make purchasing easier, put buyers in control and help them get the best market price.
As corn and feed costs soared it became apparent to Ryan Cooney, owner of Feedpail.com, that with better access to feed ingredient markets producers could get better pricing. So Cooney started Feedpail.com this spring with the free Supplier Listings, where sellers can post feed ingredients for sale and buyers can view those ingredients and get connected with the suppliers.
But, Cooney says, “that wasn’t enough. There needed to be a way to create better connections and make the process easier for buyers of feed ingredients. I knew that technology could help make a difference for producers in how they sourced ingredients and that’s when the online Reverse Auction idea started.”
Feedpail is designed to fill a technology gap in the industry. If you look at how the industry has evolved it becomes apparent that technology can play a helping role in purchasing feed ingredients. First, as operation size has increased more livestock producers are able to buy and utilize bulk ingredients. Second, internet usage has really taken off and livestock producers actively leverage the internet. Third, with this year’s drought and other long term market forces there is more supply and price volatility than ever before.
Yet, the process for buying and selling bulk feed ingredients has largely been unchanged for the last 10, 15 or even 20 years. For most, it’s not their main responsibility, buying feed ingredients is just one more thing a producer needs to accomplish in the day. But with limited networks and lots of volatility the process can take a lot of time and a producer is still at risk of making a poor buying decision.
The Reverse Auction service moves the buying and selling process towards the future. Giving broader access to both suppliers and buyers of feed ingredients so those who are ready to sell and those who need to buy can get connected.
Feed ingredient buyers use the Reverse Auction service by posting the ingredient they want to buy including tons, timing and any specifications that need to be met. Then the Reverse Auction works like a funnel. A large network of suppliers goes in the top of the funnel and they compete in a reverse auction format where the price goes lower with each bid. Because everyone can see the bid amounts there is a high degree of transparency which helps to achieve a lower price. At the end of the auction the buyer chooses if they want to accept the winning auction price and is then connected directly with the supplier. The Reverse Auction service makes it hassle free to source ingredients and buyers can be confident they are getting the best market price.
The combination of the Reverse Auction service and Supplier Listings from Feedpail make it easy to find bulk feed ingredients and get the best market price. Many users have been able to find new feed ingredients on the Supplier Listings they would not have access to otherwise. Now with the Reverse Auction service buyers can specify exactly the ingredient they want to purchase and let the technology do the work for them.
For more information visit www.feedpail.com.