The success of a reverse auction cannot be measured immediately and solely based on the savings achieved; experience shows that problems can arise, including serious problems, when the product or service to be auctioned is inappropriate.
The following report illustrates the current role of the e-sourcing and e-auctions in the business landscape, and states some crucial challenges and success factors that these tools have to face. Using real examples, it shows how an incorrect knowledge of what the e-Sourcing is and what it allows, combined with an inappropriate use of the e-auctions has brought about some unsatisfactory experiences, and "bad press" for the e-Sourcing in general.
Undoubtedly, the electronic auction is ideal for obtaining savings, but the conditions under it is applied must be carefully studied, always taking into consideration that the e-Sourcing includes other negotiations tools (RFQ, RFP) which have definitive advantages and are appropriate for the majority of the negotiations.
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Peter Saint
Peter Saint
Peter Saint
Peter Cowan
Edwin Kuller, Austrade