An auction format is only effective if you have

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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...
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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.

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