The Potential of Online Auctions

Vast amounts of pounds are tendered each year on products or services. Procurement as a profession is starting to become a more and more important focus. Companies recognise that these days, taken from a recession with increased global competition, an effective procurement strategy could mean the main difference between profitability and receivership.

E-procurement entered the scene from the nineties with the dotcom boom and e-markets. It had time for that real value to make light following the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was turned around auction.

However, as a result of procurement professional’s degree of understanding of this new technology, the principal technique of delivering advantages from auctions was via consultancy. Companies emerged supplying the possibility of outsourcing this activity along with their benefits originated from their skilled resource, innovative methodologies, systems and comprehensive supplier databases.

With all the general comprehension of reverse auctions vastly improved within the procurement community and with universities teaching about e-procurement within their curriculums, a growing number of procurement professionals desire to run their unique tenders via reverse auctions.

Many of the companies have realised this and therefore are needs to sell their software standalone or as a possible add-on to a larger Enterprise Resource Planning (ERP) system. Quite sure remains to be expensive, cumbersome as well as assistance in best practice and training.

Thus there happens to be a spot interested in a commoditised product. The basic concept is simple nevertheless there is a paradigm shift from ‘luxury’ based software, which uses a third party, into a commodity merchandise that any professional buyer can use.

Through providing a mix of the above features, reverse auctions are come to the subsequent stage within their evolution. Also, they are building on the understanding already available on the market, however, these tools may be easily opened to your buyer by offering an incredibly low barrier to entry with respect to cost, usability and best practice.

There’s services that begin used only by experts, reverse auctions now are being commoditised. One only needs to looks at complex software like engineering simulation, that is moving through the hands of engineers for the CAD Jockeys, or website design and check engine optimization tools which started out using a variety of specialized agencies but you are now within reach of consumers. Accountancy and CRM solutions have moved to the online model like Clearbooks and Zoho opening up complex applications towards the SME market. This can be the natural advancement of software within our technological age.

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