Billions of pounds are tendered every year on products or services. Procurement like a profession is becoming a progressively more important focus. Companies realise that these days, appearing out of a recession to comprehend global competition, an efficient procurement strategy can mean the difference between profitability and receivership.
E-procurement entered the scene within the nineties together with the dotcom boom and e-markets. It invested some time for the real value arrive at light following your initial surge and consolidation. One technology which emerged in aiding companies realistically and effectively at reducing cost was the reverse auction.
However, as a result of procurement professional’s a higher level understanding of this new technology, the principal approach to delivering advantages of auctions was via consultancy. Companies emerged providing the chance for outsourcing this activity as well as their benefits originated their skilled resource, innovative methodologies, systems and comprehensive supplier databases.
With all the general understanding of reverse auctions vastly improved from the procurement community along with universities teaching about e-procurement within their curriculums, increasingly more procurement professionals need to run their very own tenders via reverse auctions.
Some of the companies have realised this and they are starting to sell their software standalone or being an add-on to a larger Enterprise Resource Planning (ERP) system. Quite sure is still expensive, cumbersome as well as assistance in best practice and training.
Thus there is now a gap interested in a commoditised product. Principle concept is simple because there is a paradigm shift from ‘luxury’ based software, which uses a 3rd party, to a commodity creation that any professional buyer may use.
By offering a combination of the above mentioned features, reverse auctions are taken up the next stage within their evolution. They’re not only building about the understanding already available on the market, however these tools can easily be opened to the buyer by offering an extremely low barrier to entry when it comes to cost, usability and finest practice.
As with most services that begin getting used only by experts, reverse auctions now are being commoditised. One only needs to examines complex software like engineering simulation, that is moving from your hands of engineers towards the CAD Jockeys, or website design and look engine optimization tools which began using a plethora of specialized agencies but you are now in the hands of consumers. Accountancy and CRM solutions have moved to the online model for example Clearbooks and Zoho examining complex applications towards the SME market. This can be the natural continuing development of software in our technological age.
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