Here is a very good, very brief overview of the case for - and yes, perhaps against - incorporating reverse auctions into your procurement strategy. It comes from Kurt Grashaw, who is the founder of the Technology Enrichment Group, based in Simsbury, CT. You can read Grashaw's analysis from eTrenz (http://e-trenz.com/) below:
What are reverse auctions? What are the pros and cons to implementing a reverse auction?
I think Grashaw did a very good job here. The only things that I would take issue with is in the area of supplier relationships (as there are both pros and cons here, including introducing competition where it is desperately needed to ensure fair pricing and to create new opportunities for innovative upstart competitors) and the quantity question (with today's tools available from reverse auction providers, smaller and smaller buys can be very effectively executed through competitive bidding). So, kudos to Kurt overall - as this article will be a good resource both for executives wanting to learn more about how auctions should be a part of their acquisition strategies and for academicians/students in the field (yeah, references!).
David
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