Point Counterpoint

2011 ◽  
pp. 1-9
Author(s):  
Thomas F. Gattiker ◽  
M. L. Emiliani
Keyword(s):  
Reverse Auctions ◽  
Reverse Auction ◽  
Online Reverse Auctions

In this chapter, the online reverse auction is introduced through a series of points and counterpoints on the use of the tool. Tom Gattiker, Boise State, and ML (Bob) Emiliani, Central Connecticut State, identify and debate eleven points in the use of online reverse auctions

Wood pallet suppliers' reaction to online reverse auctions

2005 ◽  
Vol 10 (4) ◽  
pp. 278-287 ◽  
Author(s):  
M.L. Emiliani ◽  
D.J. Stec
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Survey Method ◽  
Reverse Auctions ◽  
Reverse Auction ◽  
Content Type ◽  
Cooperative Relationships ◽  
Market Makers ◽  
Online Reverse Auctions ◽  
Parts Suppliers

PurposeThe purpose of this paper is to quantitatively assess wood pallet suppliers' reaction to online reverse auctions and its impact on their business policies and practices.Design/methodology/approachSurvey method was used to determine how pallet suppliers react to online reverse auctions.FindingsDetermines that pallet suppliers do not realize the benefits claimed by online reverse auction service providers. Identifies new sources of costs which accrue to buyers and are not accounted for in so‐called “total cost” request for quotes including: retaliatory pricing practices, less cooperative relationships, and sourcing work back to the original supplier. The qualitative benefits identified for suppliers by third‐party online reverse auction service providers are overstated or false.Research limitations/implicationsThe present work can be extended to other commodity categories to identify similarities and differences in how suppliers react to online reverse auctions, understand the domain of successful and unsuccessful application of the online reverse auction tool, and provide further insight into the evolution of buyer‐seller relationships, including embedded organizational routines such as power‐based bargaining.Practical implicationsFindings mirror the results found in a previous study that examined aerospace parts suppliers' reaction to online reverse auctions, and indicates that market makers have consistently overstated the benefits of online reverse auctions to both sellers and buyers, and the use of this tool will typically result in unfavorable outcomes for both buyers and sellers.Originality/valueThis paper will be of interest to buyers, sellers, and market makers, as it identifies important problems with online reverse auctions, and suggests questions that buyers should ask market makers to ensure better sourcing decisions.

Online reverse auctions: Common myths versus evolving reality

2007 ◽  
Vol 50 (5) ◽  
pp. 373-384 ◽  
Author(s):  
Tobias Schoenherr ◽  
Vincent A. Mabert
Keyword(s):  
Reverse Auctions ◽  
Online Reverse Auctions

How to do a reverse auction

2012 ◽  
Vol 53 (1) ◽  
pp. 26-31
Author(s):  
Ulli Arnold ◽  
Wolfgang Schnellbächer ◽  
Philipp Glaser-Gallion
Keyword(s):  
Time Limit ◽  
Reverse Auctions ◽  
Reverse Auction ◽  
Face To Face

Elektronische Beschaffungsauktionen sind das wohl am intensivsten diskutierte Einkaufsinstrument des vergangenen Jahrzehnts. Befürworter sehen den Grund dafür primär in den zu erzielenden Preisreduktionen im Vergleich zu Face-to-Face-Verhandlungen oder Ausschreibungen. Bei Durchführung einer so genannten electronic reverse auction ist eine Vielzahl an Parametern wie der Auktionstyp, die Dauer des Verfahrens oder der Transparenzgrad zu bestimmen. Dieser Artikel stellt die zur Verfügung stehenden Parameter bei einer Einkaufsauktion vor und zeigt auf, in welcher Beschaffungssituation welches Verfahren zu wählen ist. Electronic reverse auctions (eRAs) are one of the central tools in e-procurement. They enable significant price reductions in comparison to former negotiation methods. When conducting an eRA purchasers have to decide on a variety of parameters such as the auction type, the time limit or the transparency degree. This article introduces these parameters and connects them to specific purchasing situations. Keywords: reversed auction

How to recover B2B relationships after a failed online reverse auction

2019 ◽  
Vol 35 (3) ◽  
pp. 551-563 ◽  
Author(s):  
Roberto Mora Cortez ◽  
Wesley J. Johnston
Keyword(s):  
Mining Industry ◽  
Death Sentence ◽  
Reverse Auctions ◽  
Longitudinal Case Study ◽  
Buying Behavior ◽  
Reverse Auction ◽  
Content Type ◽  
B2b Relationships ◽  
Overall Evaluation ◽  
Seller Relationship

Purpose This paper aims to explore the possible scenarios after a failed reverse auction to continue a current buyer–seller relationship. Design/methodology/approach The authors developed a further understanding of reverse auctions through the examination of a longitudinal case study in the mining industry based on grounded theory. Findings The study indicates that losing a reverse auction is not a death sentence for the current supplier. Four factors influence the potential scenarios: buyer factors, supplier factors, buyer–seller factors and contextual factors. If the overall evaluation favors the current buyer–seller relationship, the supplier can continue the business interaction by full renegotiation or discrete step-by-step reconsideration. Conversely, the buyer–seller relationship would reach a state of dissolution. Originality/value This manuscript contributes to the understanding of reverse auction, an under-researched theme in organizational buying behavior theory. This paper is the first attempt to link buyer–seller relationship dissolution and reverse auctions. The authors suggest that more academic endeavors are needed to study online reverse auctions.

An Exploratory Study of the Introduction of Online Reverse Auctions

2003 ◽  
Vol 67 (3) ◽  
pp. 96-107 ◽  
Author(s):  
Sandy D. Jap
Keyword(s):  
Exploratory Study ◽  
Price Competition ◽  
Cost Savings ◽  
Reverse Auctions ◽  
Supplier Relationships ◽  
Sealed Bid ◽  
Sealed Bid Auctions ◽  
Online Reverse Auctions ◽  
Quasi Experiment

Buyers are increasingly turning to online reverse auctions in their negotiations with suppliers. How do these price competition mechanisms affect buyer–supplier relationships? The author considers this question in the context of a quasi experiment involving six online reverse auctions conducted in the supply base of a major industrial buyer. The results indicate that these auctions increase both new and current suppliers’ beliefs that buyers act opportunistically, particularly in open-bid auctions. Current suppliers are generally more willing than new suppliers to make dedicated investments toward the buyer. Paradoxically, in sealed-bid auctions, both current and new suppliers increase their willingness to make dedicated investments toward the buyer. Although these auctions can yield cost savings, the savings are category specific and are not systematically related to an open- or sealed-bid format. The author also discusses implications for the use of online reverse auctions in industrial sourcing activities.

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