Billions of pounds are tendered every year on services and goods. Procurement like a profession is starting to become an extremely important focus. Companies realise that in these times, coming from an economic downturn with an increase of global competition, a competent procurement strategy could mean the main difference between profitability and receivership.
E-procurement entered the scene inside the nineties using the dotcom boom and e-markets. It invested some time for the real value to find light following the initial surge and consolidation. One technology which emerged in aiding companies realistically and effectively at reducing cost was overturn auction.
However, because of procurement professional’s amount of comprehension of this new technology, the principal way of delivering advantages of auctions was via consultancy. Companies emerged providing the chance for outsourcing this activity and their benefits originated in their skilled resource, leading edge methodologies, systems and comprehensive supplier databases.
Using the general knowledge of reverse auctions vastly improved within the procurement community and with universities teaching about e-procurement in their curriculums, a growing number of procurement professionals wish to run their very own tenders via reverse auctions.
A few of the companies have realised this and therefore are starting to sell their software stand alone or as an add-on with a larger Enterprise Resource Planning (ERP) system. Quite sure remains to be expensive, cumbersome and needs assistance in best practice and training.
Thus there is a space looking for a commoditised product. The basic concept is straightforward while there is a paradigm shift from ‘luxury’ based software, which takes a third party, to some commodity item that any professional buyer are able to use.
By providing a mix of the above mentioned features, reverse auctions are increasingly being taken to the next stage within their evolution. They’re not only building on the understanding already available on the market, but these tools can be easily opened up for any buyer by offering an incredibly low barrier to entry with respect to cost, usability and greatest practice.
There’s services that begin being used only by experts, reverse auctions now find themselves being commoditised. One only needs to talks about complex software such as engineering simulation, which can be moving through the hands of engineers on the CAD Jockeys, or web site design and appearance engine optimization tools which commenced which has a plethora of specialized agencies but you are now in the hands of consumers. Accountancy and CRM solutions has progressed to the web model including Clearbooks and Zoho examining complex applications on the SME market. This can be the natural continuing development of software inside our technological age.
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