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Online Reverse Auctions: Common Myths versus Evolving Reality
內容大綱
Business-to-Business (B2B) online reverse auctions have become a popular way to source products and services. Due to their relative newness and conflicting reports, however, several myths and misconceptions about them still exist. Investigates the truth behind five common myths associated with reverse auctions and, based on insights obtained from 30 case study companies, provides prescriptive evidence and direction for supply managers regarding how not to fall victim to these myths. Presents useful guidance to achieve the following realities: First, while a lower price is one objective in reverse auctions, it is often not the most important, and can easily be complemented with non-price attributes; Second, commodity items are usually easier candidates for reverse auctions, but non-commodity items can also be bid successfully; Third, reverse auctions can frequently hurt buyer-supplier relationships, but there are many ways to prevent this from happening; Fourth, while first-time bidding events generally result in higher savings, continued cost advantages are possible; and Fifth, even though there is a decline in reverse auctions usage, they are here for the long run.