The Future of Online Auctions

The Future of Online Auctions

Billions of pounds are tendered yearly on products or services. Procurement being a profession is becoming an ever more important focus. Companies realise that in these times, coming 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 with the dotcom boom and e-markets. It had time for the real value to come to light following the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was the opposite auction.

However, as a result of procurement professional’s a higher level idea of this new technology, the main way of delivering advantages of auctions was via consultancy. Companies emerged offering the possibility of outsourcing this activity in addition to their benefits originated in their skilled resource, leading edge methodologies, systems and comprehensive supplier databases.

Together with the general knowledge of reverse auctions vastly improved within the procurement community along with universities teaching about e-procurement within their curriculums, more and more procurement professionals desire to run their unique tenders via reverse auctions.

A number of the companies have realised this and therefore are beginning to sell their software stand-alone or just as one add-on to a larger Enterprise Resource Planning (ERP) system. This software continues to be expensive, cumbersome and needs assistance in best practice and training.

Thus there is now a gap searching for a commoditised product. The fundamental concept is simple because there is a paradigm shift from ‘luxury’ based software, which requires a third party, into a commodity merchandise that any professional buyer will use.

By providing a variety of the above features, reverse auctions are now being taken up another stage inside their evolution. They’re not only building for the understanding already out there, however, these tools could be showed to any buyer by providing a very low barrier to entry regarding cost, usability and greatest practice.

As with most services that start off being utilized only by experts, reverse auctions now find themselves being commoditised. One only needs to discusses complex software such as engineering simulation, which can be moving from your hands of engineers towards the CAD Jockeys, or website design and look engine optimization tools which commenced having a variety of specialized agencies but they are now in the hands of consumers. Accountancy and CRM solutions have moved to the internet model including Clearbooks and Zoho opening complex applications on the SME market. This is the natural growth of software within our technological age.

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Holly Rodriguez

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