Skip navigation

The complexities of e-reverse-auction-facilitated aggregated procurement in digitally clustered organisations

The complexities of e-reverse-auction-facilitated aggregated procurement in digitally clustered organisations

Adebanjo, Dotun (2010) The complexities of e-reverse-auction-facilitated aggregated procurement in digitally clustered organisations. Supply Chain Management, 15 (1). pp. 69-79. ISSN 1359-8546 (doi:10.1108/13598541011018139)

Full text not available from this repository.

Abstract

Purpose – The purpose of this paper is to present the findings of a study into aggregated procurement in digitally clustered organisations. It brings together key principles including business clustering, e-procurement, aggregation and buyer-seller relationships. The paper identifies complexities associated with conducting reverse auctions for clustered organisations.

Design/methodology/approach – A case study of a reverse auction carried out by an independent intermediary forms the basis of the paper. Data presented and analysed include pre-auction and auction performance of participants.

Findings – Aggregating company spend and sourcing through reverse auctions poses several challenges. These include a selection of suitable products and services, the behaviour of buyers and sellers in a clustered environment and the identification of a suitable business model for the independent intermediary. It also indicates that not all participants may benefit or benefit significantly from clustered auctions.

Research limitations/implications – Understanding of participant behaviour before, during and after e-reverse auctions in single and clustered organisations needs to be better understood. Differences in the mechanisms between single buyer and multiple buyer auctions also need more clarity.

Practical implications – For clustered reverse auctions, there is a need to identify products with low build complexity and significant value-add. Otherwise, it may be necessary to form “clusters within the cluster” in order to attain true aggregation.

Originality/value – This study examines participant actions in intermediary-facilitated multi-buyer and multi-seller e-reverse auctions. It identifies a number of behavioural issues that relate to this context and that impact on the success of auctions in a digital cluster context.

Item Type: Article
Additional Information: [1] First published: 2010.
Uncontrolled Keywords: auctions, cluster analysis, demand management, procurement
Subjects: H Social Sciences > HF Commerce
Q Science > QA Mathematics > QA76 Computer software
Faculty / Department / Research Group: Faculty of Business > Department of Systems Management & Strategy
Related URLs:
Last Modified: 14 Oct 2016 09:24
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/10072

Actions (login required)

View Item View Item