The Future of Online Auctions

Vast amounts of pounds are tendered annually on goods and services. Procurement being a profession is becoming a progressively more important focus. Companies realise that these days, appearing out of a recession with additional global competition, a powerful procurement strategy can often mean the real difference between profitability and receivership.

E-procurement entered the scene inside the nineties with all the dotcom boom and e-markets. It invested some time for that real value arrive at light after the 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 degree of understanding of this new technology, the main way of delivering gains advantage from auctions was via consultancy. Companies emerged providing the potential for outsourcing this activity in addition to their benefits originated from their skilled resource, cutting edge methodologies, systems and comprehensive supplier databases.

Using the general understanding of reverse auctions vastly improved inside the procurement community along with universities teaching about e-procurement within their curriculums, a lot more procurement professionals want to run their unique tenders via reverse auctions.

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

Thus now there is a spot searching for a commoditised product. The essential concept is simple nevertheless there is a paradigm shift from ‘luxury’ based software, which needs a 3rd party, into a commodity creation that any professional buyer will use.

By giving a mixture of the above mentioned features, reverse auctions are now being taken up the following stage inside their evolution. They’re not only building around the understanding already available, these tools may be easily opened to any buyer by offering a very low barrier to entry with regards to cost, usability and best practice.

As with most services that start off getting used only by experts, reverse auctions now find themselves being commoditised. One only should discusses complex software such as engineering simulation, which can be moving through the hands of engineers for the CAD Jockeys, or web page design and appearance engine optimization tools which commenced with a plethora of specialized agencies but are now to consumers. Accountancy and CRM solutions have moved to the web model like Clearbooks and Zoho opening up complex applications for the SME market. This can be the natural continuing development of software inside our technological age.

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