This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ay be equally or more important
than unit prices alone. While auction providers can increasingly accommodate these additional factors, determining the overall “leading” bidder in a real-time auction
environment can quickly become very difficult or impractical.
An auction format is only effective if you have significant volume that can be leveraged in
order to gain attention and price discounts from the marketplace. For many smaller and
medium-sized companies, the level of purchases of specific categories of goods and
services is unlikely to be adequate to command superior pricing through an auction.
To address these situations, yet another variant of e-procurement has emerged –– an
outsourcing or intermediary approach. Here, in effect you turn over your spending
requirements for office supplies, electricity, MRO, or other business needs to a third party
who bundles it together with the volume of other small and medium-sized companies to
create enough volume leverage to attract su...
View Full Document
This test prep was uploaded on 04/01/2014 for the course INDE 6370 taught by Professor Staff during the Spring '08 term at University of Houston.
- Spring '08