The complexities of e-reverse-auction-facilitated aggregated procurement in digitally clustered organisations
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Adebanjo, Dotun 
ORCID: https://orcid.org/0000-0003-4845-9411
(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)
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 / School / Research Centre / Research Group: | Faculty of Business > Department of Systems Management & Strategy |
| Related URLs: | |
| Last Modified: | 14 Oct 2016 09:24 |
| URI: | http://gala.gre.ac.uk/id/eprint/10072 |
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