Billions of pounds are tendered yearly on goods and services. Procurement like a profession is now a more and more important focus. Companies recognise that these days, coming from an economic depression with an increase of global competition, an efficient procurement strategy could mean the gap between profitability and receivership.
E-procurement entered the scene in the nineties using the dotcom boom and e-markets. It took time to the real value arrive at light following your initial surge and consolidation. One technology which emerged in aiding companies realistically and effectively at reducing cost was the opposite auction.
However, because of procurement professional’s a higher level knowledge of this new technology, the principal technique of delivering advantages from auctions was via consultancy. Companies emerged providing the potential for outsourcing this activity in addition to their benefits originated from their skilled resource, innovative methodologies, systems and comprehensive supplier databases.
With the general knowledge of reverse auctions vastly improved inside the procurement community and with universities teaching about e-procurement in their curriculums, increasingly more procurement professionals want to run their very own tenders via reverse auctions.
Many of the companies have realised this and are beginning sell their software stand alone or being an add-on to a larger Enterprise Resource Planning (ERP) system. This software continues to be expensive, cumbersome as well as assistance in best practice and training.
Thus there is a niche searching for a commoditised product. The essential concept is simple while there is a paradigm shift from ‘luxury’ based software, which needs a alternative party, into a commodity product which any professional buyer will use.
By providing a variety of the above features, reverse auctions are now being taken up the subsequent stage in their evolution. Also, they are building on the understanding already in the marketplace, but these tools can be easily exposed to your buyer by giving a really low barrier to entry when it comes to cost, usability and greatest practice.
As with most services that start off used only by experts, reverse auctions now are being commoditised. One only needs to discusses complex software such as engineering simulation, that is moving in the hands of engineers to the CAD Jockeys, or web site design and look engine optimization tools which started off having a plethora of specialized agencies however are now at the disposal of consumers. Accountancy and CRM solutions has progressed to the web model for example Clearbooks and Zoho opening up complex applications for the SME market. This can be the natural advancement of software in our technological age.
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