The Potential of Online Auctions

Billions of pounds are tendered annually on products and services. Procurement like a profession is now a more and more important focus. Companies recognise that these days, appearing out of an economic downturn with increased global competition, an efficient procurement strategy often means the main difference between profitability and receivership.

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

However, because of procurement professional’s a higher level understanding of this new technology, the key approach to delivering advantages from auctions was via consultancy. Companies emerged providing the potential for outsourcing this activity in addition to their benefits originated in their skilled resource, cutting edge methodologies, systems and comprehensive supplier databases.

Together with the general idea of reverse auctions vastly improved from the procurement community sufficient reason for universities teaching about e-procurement as part of their curriculums, a growing number of procurement professionals need to run their unique tenders via reverse auctions.

A few of the companies have realised this and so are beginning sell their software stand alone or as a possible add-on with a larger Enterprise Resource Planning (ERP) system. Many remains to be expensive, cumbersome and needs assistance in best practice and training.

Thus there happens to be a space searching for a commoditised product. The essential concept is simple as there is a paradigm shift from ‘luxury’ based software, which takes a vacation, to a commodity merchandise that any professional buyer are able to use.

Through providing a mix of the aforementioned features, reverse auctions are delivered to the following stage of their evolution. Not only are they building for the understanding already available on the market, but these tools may be easily exposed for any buyer by giving an incredibly low barrier to entry regarding cost, usability and finest practice.

There’s services that start used only by experts, reverse auctions now wind up being commoditised. One only needs to examines complex software for example engineering simulation, which is moving from your hands of engineers for the CAD Jockeys, or website design and check engine optimization tools which started out having a variety of specialized agencies but are now within reach of consumers. Accountancy and CRM solutions has progressed to the web model including Clearbooks and Zoho examining complex applications towards the SME market. This can be the natural growth of software within our technological age.

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