Immeasureable pounds are tendered every year on products or services. Procurement like a profession is now an ever more important focus. Companies realise that these days, taken from an economic depression with additional global competition, a competent procurement strategy can mean the real difference between profitability and receivership.
E-procurement entered the scene within the nineties together with the dotcom boom and e-markets. It took time for the real value to come to light after the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was the reverse auction.
However, as a result of procurement professional’s level of understanding of this new technology, the primary approach to delivering gains advantage from auctions was via consultancy. Companies emerged offering the potential for outsourcing this activity as well as their benefits came from their skilled resource, leading edge methodologies, systems and comprehensive supplier databases.
Using the general understanding of reverse auctions vastly improved within the procurement community sufficient reason for universities teaching about e-procurement in their curriculums, a lot more procurement professionals want to run their very own tenders via reverse auctions.
Some of the companies have realised this and therefore are beginning sell their software stand-alone or as an add-on to a larger Enterprise Resource Planning (ERP) system. Quite sure remains expensive, cumbersome and requires assistance in best practice and training.
Thus there is a gap in the market for a commoditised product. The fundamental concept is not hard nevertheless there is a paradigm shift from ‘luxury’ based software, which requires a 3rd party, with a commodity product which any professional buyer may use.
Through providing a combination of the aforementioned features, reverse auctions are increasingly being delivered to the next stage within their evolution. They’re not only building around the understanding already in the marketplace, these tools could be showed to your buyer by providing an incredibly low barrier to entry regarding cost, usability as well as practice.
Associated with pension transfer services that start out being used only by experts, reverse auctions now wind up being commoditised. One only must talks about complex software like engineering simulation, which can be moving through the hands of engineers for the CAD Jockeys, or web page design and look engine optimization tools which commenced with a variety of specialized agencies but are now to consumers. Accountancy and CRM solutions have moved to the net model like Clearbooks and Zoho opening up complex applications for the SME market. This is actually the natural continuing development of software within our technological age.
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