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Implementing Reverse E-Auctions: A Learning Process
Reverse e-auctions, which enable suppliers to compete online in real time, are changing the way organizations select their suppliers. Explores how five large firms in different industries learned to use e-auctions and how e-auctions were integrated into their purchasing processes. To implement e-auctions successfully, organizations should: build e-auction competencies; organize for knowledge management; create a holistic sourcing process; focus on the total cost of ownership; and experiment with e-auction designs. Draws key observations from the case studies and presents implications for supply managers.