Emerald Login
   

Welcome guest

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

Article Information:

Title:

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

Author(s):

Dotun Adebanjo

Journal:

Supply Chain Management: An International Journal

Year:

2010

Volume:

15

Issue:

1

Page:

69 - 79


ISSN:

1359-8546


DOI:

10.1108/13598541011018139

Publisher:

Emerald Group Publishing Limited

Document Access:

Existing customers:

Please login above.

Purchase this document:
Price payable: GBP £13.00
plus handling charge of GBP £1.50 and VAT where applicable.
Purchase

Request this document:
Print or e-mail a document request to your librarian.
Request

Reprints & permissions:
Image: Rightslink Request

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.

Keywords:

Auctions, Cluster analysis, Demand management, Procurement


Article Type:

Case study


Article URL:

http://www.emeraldinsight.com/10.1108/13598541011018139

Top