Billions of pounds are tendered every year on goods and services. Procurement as being a profession is becoming an ever more important focus. Companies recognise that these days, coming from a recession with additional global competition, an effective procurement strategy can often mean the gap between profitability and receivership.
E-procurement entered the scene within the nineties with all the dotcom boom and e-markets. It required time for that real value arrive at light after the initial surge and consolidation. One technology which emerged in assisting companies realistically and effectively at reducing cost was the opposite auction.
However, due to procurement professional’s amount of knowledge of this new technology, the principal technique of delivering advantages of auctions was via consultancy. Companies emerged offering the possibility of outsourcing this activity in addition to their benefits came from their skilled resource, innovative methodologies, systems and comprehensive supplier databases.
With all the general knowledge of reverse auctions vastly improved inside procurement community and with universities teaching about e-procurement within their curriculums, a growing number of procurement professionals need to run their unique tenders via reverse auctions.
Some of the companies have realised this and therefore are beginning sell their software stand-alone or being an add-on to a larger Enterprise Resource Planning (ERP) system. This software remains to be expensive, cumbersome and requires assistance in best practice and training.
Thus there happens to be a gap in the market for a commoditised product. The fundamental concept is straightforward nevertheless there is a paradigm shift from ‘luxury’ based software, which takes a vacation, to some commodity product which any professional buyer can use.
By providing a combination of these features, reverse auctions are being come to the following stage in their evolution. Also, they are building on the understanding already available, but these tools may be easily opened up to any buyer by providing an incredibly low barrier to entry with regards to cost, usability as well as practice.
Associated with pension transfer services that start off used only by experts, reverse auctions now find themselves being commoditised. One only needs to examines complex software for example engineering simulation, that’s moving in the hands of engineers to the CAD Jockeys, or web site design and look engine optimization tools which started off which has a variety of specialized agencies but they are now at the disposal of consumers. Accountancy and CRM solutions have progressed to the net model for example Clearbooks and Zoho checking complex applications to the SME market. This can be the natural progression of software inside our technological age.
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