Huge amounts of pounds are tendered yearly on services and goods. Procurement as a profession is becoming an ever more important focus. Companies realise that in these times, taken from a recession with increased global competition, an efficient procurement strategy often means the gap between profitability and receivership.
E-procurement entered the scene in the nineties using the dotcom boom and e-markets. It had time for the real value arrive at light as soon as the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was the opposite auction.
However, because of procurement professional’s degree of idea of this new technology, the principal approach to delivering advantages from auctions was via consultancy. Companies emerged supplying the chance of outsourcing this activity and their benefits originated in their skilled resource, leading edge methodologies, systems and comprehensive supplier databases.
Together with the general comprehension of reverse auctions vastly improved within the procurement community with universities teaching about e-procurement as part of their curriculums, increasingly more procurement professionals need to run their very own tenders via reverse auctions.
A number of the companies have realised this and therefore are beginning to sell their software standalone or as an add-on with a larger Enterprise Resource Planning (ERP) system. Quite sure continues to be expensive, cumbersome and requirements assistance in best practice and training.
Thus there is a niche searching for a commoditised product. The essential concept is easy as there is a paradigm shift from ‘luxury’ based software, which needs a vacation, to a commodity product which any professional buyer can use.
By offering a mixture of the above features, reverse auctions are taken up the subsequent stage inside their evolution. Also, they are building on the understanding already available on the market, but these tools may be easily showed for any buyer through providing an extremely low barrier to entry regarding cost, usability and greatest practice.
As with most services that start used only by experts, reverse auctions now find themselves being commoditised. One only needs to discusses complex software including engineering simulation, which can be moving through the hands of engineers for the CAD Jockeys, or website design and appearance engine optimization tools which commenced with a plethora of specialized agencies however are now within reach of consumers. Accountancy and CRM solutions has progressed to the online model for example Clearbooks and Zoho opening up complex applications towards the SME market. This can be the natural progression of software in our technological age.
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