The Softer Rewards of Auctions
Sears, as one of the largest retailers, has a slogan "The softer side of Sears". This week's eSourcing Wiki article is about eAuctions in Sourcing. It too describes a softer side of auctions which offers a great deal of value.
Most of the time when a company is running an auction, they are focused on savings and getting the lowest price. While the award may not go to the supplier with the lowest price, it sets the stage overall.
So what is there besides price in the auction process? Time savings is significant. And we all know that time is money. Traditionally, the price negotiation can be weeks or months, especially if there are many suppliers involved. This allows your resources to spend time on more valuable activities.
The suppliers also benefit from having more visibility into their marketplace. While they can not see who else is bidding, they definitely have a sense of where they fall versus the competition.
Take a look at the eSourcing wiki and see that full list. What have you seen and what comments do you have about the other features beyond price?