Abstract
There were several challenges in the early years of online reverse auctions, and significant learning had to occur. This chapter focuses on these challenges, and offers a range of best practices in order to manage them. Specific aspects emphasized include the importance of having the right bid package, the importance of preparation, the importance of education and training, and the move of companies toward self-proficiency; tied to this was also the role played by the online auction provider and how they changed over the years in terms of their value-added services—the evolution of their business model will be reviewed. The chapter also introduces a set of common myths that were circulated in the early years, coupled with advice on how to not fall victim to them. Lastly, an illustrative example of a successful online reverse auction implementation is provided.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Beall, S., Carter, C., Carter, P. L., Germer, T., Hendrick, T., Jap, S., et al. (2003). The Role of Reverse Auctions in Strategic Sourcing. Tempe, AZ: CAPS Research, Focus Study.
Drucker, P. F. (1995). The New Productivity Challenge. Quality in Higher Education, 37, 45–53.
Holcomb, T. R., & Hitt, M. A. (2007). Toward a Model of Strategic Outsourcing. Journal of Operations Management, 25(2), 464–481.
Jap, S. D. (2007). The Impact of Online Reverse Auction Design on Buyer-Supplier Relationships. Journal of Marketing, 71(1), 146–159.
Johnston, W. J., & Lewin, J. E. (1996). Organizational Buying Behavior: Toward an Integrative Framework. Journal of Business Research, 35(1), 1–15.
Mabert, V. A., & Schoenherr, T. (2001). An Online RFQ System: A Case Study. Practix, 4(2), 1–6.
Mabert, V. A., & Skeels, J. A. (2002). Internet Reverse Auctions: Valuable Tool in Experienced Hands. Business Horizons, 4(45), 70–76.
Phillips, C., & Meeker, M. (2000). The B2B Internet Report: Collaborative Commerce. New York: Morgan Stanley Dean Witter Equity Research.
Robinson, P. J., Faris, C. W., & Wind, Y. (1967). Industrial Buying and Creative Marketing. Boston, MA: Allyn and Bacon.
Schoenherr, T. (2005). An Exploratory Study of Bundling in B2B Procurement Auctions. Doctoral dissertation, Kelley School of Business, Indiana University.
Schoenherr, T., & Mabert, V. A. (2003). A Conceptual Study of Developments in B2B Reverse Online Auctions: The Changing Role of the Online Auction Provider/Intermediary. In A. Chikan (Ed.), Advances in Purchasing and Supply Chain Management (Vol. 4). Budapest, Hungary: IFPSM Publications.
Schoenherr, T., & Mabert, V. A. (2006). Bundling for B2B Procurement: Current State and Best Practices. International Journal of Integrated Supply Management, 2(3), 189–213.
Schoenherr, T., & Mabert, V. A. (2007). Online Reverse Auctions: Common Myths Versus Evolving Reality. Business Horizons, 50(5), 373–384.
Schoenherr, T., & Mabert, V. A. (2008). The Use of Bundling in B2B Online Reverse Auctions. Journal of Operations Management, 26(1), 81–95.
Schoenherr, T., & Mabert, V. A. (2014). Goal Orientation and Preparation Process in Online Reverse Auctions: A Comparative Investigation Taking a Transaction Cost Economics Lens. Transportation Journal, 53(4), 381–423.
Sheth, J. (1973). A Model of Industrial Buyer Behavior. Journal of Marketing, 37(4), 50–56.
Spulber, D. F. (1999). Market Microstructure: Intermediaries and the Theory of the Firm. Cambridge: Cambridge University Press.
Tate, W., Fawcett, S., Schoenherr, T., Ashenbaum, B., Carter, C., & Bals, L. (2018). Purchasing & Supply Management: Enhancing Competitiveness and Customer Value. MyEducator.
Williamson, O. E. (2008). Outsourcing: Transaction Cost Economics and Supply Chain Management. Journal of Supply Chain Management, 44(2), 5–16.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Schoenherr, T. (2019). Online Reverse Auctions: Challenges and Best Practices. In: The Evolution of Electronic Procurement. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-319-93985-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-93985-8_5
Published:
Publisher Name: Palgrave Pivot, Cham
Print ISBN: 978-3-319-93984-1
Online ISBN: 978-3-319-93985-8
eBook Packages: Business and ManagementBusiness and Management (R0)