About eSourcing and Auctions
Mon 28 Aug 2006
Auctions and sourcing are not new, but e-commerce technology can make the process quicker, more efficient and widespread.
The type of e-Auction that most people know about is the kind that is hosted by e-Bay, QXL and other auction sites. These allow people to bid for items that other people or companies are offering for sale. As people bid, they must bid higher than the current highest bid and so the price increases. The auction ends at a predetermined time and the highest bid at that time wins. In some cases their may also be a 'buy it now' option which allows a bidder to buy the item at a price that is higher than the current bid price, thereby guaranteeing a win.
Another kind of auction is used when companies are sourcing particular items. In these auctions, several suppliers compete to supply the item. The suppliers enter bids lower than the current lowest bid. At the end of a predetermined period of time, the customer will chose a supplier based on a number of factors, including the lowest price.
Other e-sourcing tools include e-RFx (electronic request for). Types of e-RFx include requests for quotes (e-RFQ), requests for prices (e-RFP) and requests for information (e-RFI).
The views expressed in this article are solely those of the author(s) and do not necessarily reflect the views of e-CommerceGuru.co.uk.
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