Difference Between Auction and Reverse Auction

Reverse auction the word itself states the reverse of auction. Auction is a process in which the person interested in buying a good bid for the same, in this the price of the good goes on increasing until the person with highest bid takes the good. In reverse auction the person bid is done for the good but the cost in this decrease instead of increasing. E-auction is a process in which the bids can be given through internet with many websites interested in selling goods at a fair price. The first reverse auction was carried in early 1990 after which it was a success.

Online reverse auction begins with a meeting that takes place between the buyer and the seller, who is also known as the market maker. During this meeting, the buyer and the seller discuss the requested service or good. Special considerations, such as necessary materials to complete the job, the time frame to complete the job, and even the budget for the job, are discussed at this meeting. If the buyer is interested in purchasing an item, considerations such as the age of the item and quality of the item may be discussed beforehand.  Reverse auction software is software which guides us in e-auction in proper way or the reverse e-auction.  Online procurement is the process of ordering and selling goods and services using the Internet. This type of ordering may be accomplished using a branded access page that is established by the vendor for a specific customer, or through a general ordering site put in place by the vendor. The main purpose of onlineprocurement is to expedite the order placement, processing, and delivery of goods and services.

The sourcing expertises are people who help us guiding in ordering and selling the goods. The procurement services are given by procurement specialist who guides us in buying or selling of goods. There are three primary types of firms that offer procurement consulting services: large multinational firms, boutique firms, and vendor-specific consulting firms. Strategic e-Sourcing is driving corporate strategies from cost reduction to value-creation, from green initiatives to risk mitigation. To compete and thrive in the market, companies need enterprise-ready, global sourcing solutions that deliver sustainable bottom-line savings and top-line growth.  Experts in e-Procurement are trying to find ways in all possible manners so as to be on the top with better firms. They are themselves trying to get proper knowledge and lend to the needy one in business.

On Demand Technology world, our customers expect relevant personalized information delivered in a timely and efficient fashion. On Demand Technology is made for people  to get personalized information through proper medium and a correct one too. Supply management describes the methods and processes of modern corporate or institutional buying. E-Tendering is the procurement process simply conducted online, i.e. supplier registration/expression of interest, contract download, submission of bid document, evaluation of tenders. Majority of companies today strive to harness the potential of global sourcing in reducing cost. Hence it is commonly found that global sourcing initiatives and programs form an integral part of the strategic sourcing plan and procurement strategy of many multinational companies.

----------------

Source by Lily Nicolas

Spread the love

Leave a Reply