High Tech Industry’s Sourcing Value Proposition: Reverse Auction
With the current slowdown being accelerated by the financial turmoil, companies are increasingly looking at avenues to cut costs yet maintain profitability against all odds. This is a tricky situation given the fact that any decision leads to a bullwhip effect owing to the integrated nature of today’s supply chain. One of the time tested techniques to achieve this is through Reverse Auctions which is quite prevalent in the High Tech industry.
A reverse auction is a strategic Sourcing tool used in industrial business-to-business procurement. It is a type of auction in which buyer invites bids from sellers, with the primary objective to drive purchase prices downward.
Oracle’s latest offering in R12 is Reverse Auction as part of the Sourcing Module (this was available in 11.5.10 as a Mini-Pack J). The online Reverse Auction has become a lifeline for the businesses on global map, because it cuts the procurement costs very quickly using the e business tools. Oracle Sourcing increases the sourcing bandwidth of procurement professionals so they can exploit many more savings opportunities and capture more value. Online collaboration and negotiation make it easy for participants from multiple organizations to exchange information, conduct bid and auction processes, and create and implement agreements. The application also dramatically reduces sourcing cycle time and creates a complete audit trail of supplier commitments.If you are looking for a Strategic Sourcing Tool, Oracle’s Sourcing module has a lot to offer.
Comments
This is a good new offering from Oracle thats enables companies to conduct reverse auction within the Oracle Applications suite itself and eliminate outside applications for this important requirement.
Posted by: K N Harilal | October 31, 2008 12:30 PM
Ariba online reverse auction tool is quite impressive as well. Lot of large organizations manage their indirect procurement through Ariba. From a user interface perspective, Ariba is really slick.
Posted by: Somnath Majumdar | November 1, 2008 10:10 AM