Huge amounts of pounds are tendered yearly on products and services. Procurement being a profession is starting to become an extremely important focus. Companies realise that in these times, coming from a recession with an increase of global competition, a powerful procurement strategy could mean the main difference between profitability and receivership.
E-procurement entered the scene from the nineties with the dotcom boom and e-markets. It took time for the real value to find light as soon as the initial surge and consolidation. One technology which emerged in aiding companies realistically and effectively at reducing cost was the opposite auction.
However, due to procurement professional’s level of idea of this new technology, the principal approach to delivering benefits from auctions was via consultancy. Companies emerged giving the possibility of outsourcing this activity as well as their benefits originated in their skilled resource, technologically advanced methodologies, systems and comprehensive supplier databases.
With the general idea of reverse auctions vastly improved inside the procurement community along with universities teaching about e-procurement in their curriculums, a lot more procurement professionals wish to run their very own tenders via reverse auctions.
A number of the companies have realised this and they are beginning to sell their software separate or being an add-on to some larger Enterprise Resource Planning (ERP) system. Many remains expensive, cumbersome and requirements assistance in best practice and training.
Thus there happens to be a space in the market for a commoditised product. Principle concept is straightforward because there is a paradigm shift from ‘luxury’ based software, which requires a 3rd party, into a commodity creation that any professional buyer are able to use.
Through providing a combination of the above features, reverse auctions are now being taken up another stage in their evolution. They’re not only building for the understanding already out there, but these tools can be easily opened for any buyer by offering a very low barrier to entry with regards to cost, usability and finest practice.
There’s services that start being utilized only by experts, reverse auctions now wind up being commoditised. One only has to talks about complex software for example engineering simulation, which can be moving from your hands of engineers towards the CAD Jockeys, or web site design and search engine optimization tools which started out with a plethora of specialized agencies but they are now at the disposal of consumers. Accountancy and CRM solutions have moved to the internet model including Clearbooks and Zoho checking complex applications to the SME market. This can be the natural advancement of software within our technological age.
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