Comments on: Reverse auction strategy http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/ The source of information and best practices in strategic sourcing. Fri, 21 Nov 2008 10:59:57 +0000 http://wordpress.org/?v=2.6.2 By: David Bush - Iasta http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-1096 David Bush - Iasta Mon, 14 Aug 2006 12:13:06 +0000 http://www.esourcingforum.com/?p=199#comment-1096 Hi Bryan, Thanks for the clarification, as I mentioned, I was disappointed that ISM was not publishing online versions. It is tough to make the translation and I know agree with you! If you have any deeper studies/white papers/analysis about RAs please contact me as I would be happy to post here on ESF. Hi Bryan,

Thanks for the clarification, as I mentioned, I was disappointed that ISM was not publishing online versions. It is tough to make the translation and I know agree with you!

If you have any deeper studies/white papers/analysis about RAs please contact me as I would be happy to post here on ESF.

]]> By: Bryan Ashenbaum http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-1085 Bryan Ashenbaum Sun, 13 Aug 2006 18:39:32 +0000 http://www.esourcingforum.com/?p=199#comment-1085 Hi Dave, Thanks for the overview of my article in the July ISM issue. You have mis-stated my point # 2 a bit - I use quite a bit of cautionary wording and in no way suggest that they should only be used for non-critical items. My suggestion was that an RA may not be appropriate for items whose sourcing process is complex, not that a "complex" item wouldn't fit with a RA. The complexity refers to the sourcing process, not the item itself. In any event, thanks for reading and reviewing it! Bryan Hi Dave,

Thanks for the overview of my article in the July ISM issue. You have mis-stated my point # 2 a bit - I use quite a bit of cautionary wording and in no way suggest that they should only be used for non-critical items. My suggestion was that an RA may not be appropriate for items whose sourcing process is complex, not that a “complex” item wouldn’t fit with a RA. The complexity refers to the sourcing process, not the item itself. In any event, thanks for reading and reviewing it!

Bryan

]]> By: serge's page http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-1083 serge's page Sun, 13 Aug 2006 13:36:39 +0000 http://www.esourcingforum.com/?p=199#comment-1083 great technique, but on b2b for complex projects how does toyota or ibm tell the global mkrplce its looking to get systems in that fit is needs? its still a closed mkt accessible only 2 those who are know to the buyer - its a halfbake great technique, but on b2b for complex projects how does toyota or ibm tell the global mkrplce its looking to get systems in that fit is needs? its still a closed mkt accessible only 2 those who are know to the buyer - its a halfbake

]]> By: Pierre Mitchell http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-960 Pierre Mitchell Thu, 03 Aug 2006 04:59:22 +0000 http://www.esourcingforum.com/?p=199#comment-960 Careful on point 2 David. You appear to equate RAs with electronic bidding events. All RAs are bidding events, but not vice versa, and you rightly do mention other types (e.g., multi-round RFx which can or can not use optimization-based scenario planning and bid evaluation/recommendation). Even if RAs are just used for 'price discovery' as part of a broader evaluation, in practice they also tend to imply pre-lotting and setting fixed requirements (or some type of algorithm calculating on a single bid parameter). Unfortunately, for larger market baskets, the pre-lotting methodology destroys value because either the basket is too big and suppliers opt out (or get in trouble) or the lots are too small and suppliers don't know what business they'll win (and also aren't allowed to craft bids that leverage their particular operational advantages) - so they hold back. This is where opening up the market basket and allowing multi-round bidding with optimization-based bid analysis unlocks additional value. Careful on point 2 David. You appear to equate RAs with electronic bidding events. All RAs are bidding events, but not vice versa, and you rightly do mention other types (e.g., multi-round RFx which can or can not use optimization-based scenario planning and bid evaluation/recommendation). Even if RAs are just used for ‘price discovery’ as part of a broader evaluation, in practice they also tend to imply pre-lotting and setting fixed requirements (or some type of algorithm calculating on a single bid parameter). Unfortunately, for larger market baskets, the pre-lotting methodology destroys value because either the basket is too big and suppliers opt out (or get in trouble) or the lots are too small and suppliers don’t know what business they’ll win (and also aren’t allowed to craft bids that leverage their particular operational advantages) - so they hold back. This is where opening up the market basket and allowing multi-round bidding with optimization-based bid analysis unlocks additional value.

]]> By: David Bush - Iasta http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-829 David Bush - Iasta Tue, 25 Jul 2006 15:18:19 +0000 http://www.esourcingforum.com/?p=199#comment-829 Thanks Jon, like I said, there are many ways to skin the cat and, my response cannot be considered comprehensive, but at least, gives a little more detail. Thanks Jon, like I said, there are many ways to skin the cat and, my response cannot be considered comprehensive, but at least, gives a little more detail.

]]> By: Jon http://www.esourcingforum.com/archives/2006/07/25/reverse-auction-strategy/#comment-827 Jon Tue, 25 Jul 2006 13:49:40 +0000 http://www.esourcingforum.com/?p=199#comment-827 Thanks! I was hoping you would respond to the article... Thanks! I was hoping you would respond to the article…

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