Vast amounts of pounds are tendered each year on services and goods. Procurement like a profession is starting to become an ever more important focus. Companies realise that in these times, coming out of an economic downturn with increased global competition, an efficient procurement strategy often means the difference between profitability and receivership.
E-procurement entered the scene from the nineties with the dotcom boom and e-markets. It took time to the real value to find light following your initial surge and consolidation. One technology which emerged in helping companies realistically and effectively at reducing cost was the opposite auction.
However, due to procurement professional’s degree of knowledge of this new technology, the main method of delivering gains advantage from auctions was via consultancy. Companies emerged offering the chance for outsourcing this activity as well as their benefits originated in their skilled resource, innovative methodologies, systems and comprehensive supplier databases.
Together with the general knowledge of reverse auctions vastly improved inside procurement community sufficient reason for universities teaching about e-procurement within their curriculums, increasingly more procurement professionals desire to run their particular tenders via reverse auctions.
Many of the companies have realised this and therefore are needs to sell their software stand-alone or as an add-on with a larger Enterprise Resource Planning (ERP) system. Many remains to be expensive, cumbersome as well as assistance in best practice and training.
Thus there is a niche interested in a commoditised product. The fundamental concept is simple nevertheless there is a paradigm shift from ‘luxury’ based software, which requires a vacation, with a commodity item that any professional buyer will use.
By providing a variety of the above mentioned features, reverse auctions are increasingly being taken to another stage in their evolution. They’re not only building around the understanding already out there, however these tools can be easily opened up to the buyer through providing an extremely low barrier to entry regarding cost, usability and greatest practice.
As with most services that begin being utilized only by experts, reverse auctions now end up being commoditised. One only has to examines complex software for example engineering simulation, which is moving in the hands of engineers to the CAD Jockeys, or website design and search engine optimization tools which started out with a variety of specialized agencies however are now within reach of consumers. Accountancy and CRM solutions have progressed to the internet model including Clearbooks and Zoho examining complex applications for the SME market. This is the natural advancement of software in our technological age.
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