Vast amounts of pounds are tendered each year on products and services. Procurement as being a profession is starting to become a more and more important focus. Companies recognise that in these times, appearing out of an economic depression with additional global competition, a competent procurement strategy could mean the real difference between profitability and receivership.
E-procurement entered the scene in the nineties with all the dotcom boom and e-markets. It required time for the real value to find light as soon as the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was the reverse auction.
However, on account of procurement professional’s a higher level comprehension of this new technology, the main technique of delivering benefits from auctions was via consultancy. Companies emerged offering the possibility of outsourcing this activity along with their benefits originated their skilled resource, innovative methodologies, systems and comprehensive supplier databases.
Together with the general idea of reverse auctions vastly improved inside the procurement community and with universities teaching about e-procurement within their curriculums, increasingly more procurement professionals want to run their unique tenders via reverse auctions.
Many of the companies have realised this and therefore are starting to sell their software stand alone or being an add-on to some larger Enterprise Resource Planning (ERP) system. Many remains to be expensive, cumbersome as well as assistance in best practice and training.
Thus now there is a spot interested in a commoditised product. The essential concept is straightforward nevertheless there is a paradigm shift from ‘luxury’ based software, which uses a alternative party, to some commodity product which any professional buyer can use.
By offering a mixture of the above features, reverse auctions are increasingly being delivered to the next stage in their evolution. They are not only building around the understanding already available, but these tools could be exposed to the buyer by giving a really low barrier to entry with regards to cost, usability as well as practice.
There’s services that start out used only by experts, reverse auctions now wind up being commoditised. One only needs to discusses complex software such as engineering simulation, that is moving in the hands of engineers to the CAD Jockeys, or web page design and appearance engine optimization tools which began which has a variety of specialized agencies but they are now in the hands of consumers. Accountancy and CRM solutions have progressed to the net model like Clearbooks and Zoho opening complex applications to the SME market. This can be the natural progression of software inside our technological age.
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