In a way these are the e procurement equivalents of

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Unformatted text preview: ing lower prices is a major objective of any buyer, of course, and a straightforward way to drive prices down and obtain increased supplier attention is to leverage total purchasing volume through Internet-based auctions. In a way, these are the e-procurement equivalents of traditional requests-for-proposal and price bidding techniques that purchasing departments have used for years: Bundle your volume together, and make it a winner-takeall proposition. Now, however, they can occur in real time with a worldwide supply base bidding interactively and with visibility of other supplier bids, until a winner emerges. As consumers, we are all familiar with auctions, in which the buyers continue to bid up the price for a given item or service until only one buyer remains. Technically, e-procurement uses “reverse auctions” or “downward auctions,” where the bidders are the suppliers and prices continue to fall until only one bidder remains, who then has the right and obligation to supply the requested goods or services at the low bid price. The initial entrant in this field,...
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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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