Braithwaite, Ron, Stein, Andrew, Hawking, Paul and Wyld, David C (2004) The “Killer” E-Business Application: Strategic Procurement Through Electronic Reverse Auctions. In: Ausweb04 : the Tenth Australian World Wide Web Conference, "AusWeb X : the challenge of integration as the web moves into its second decade" : proceedings of AusWeb04. Treloar, Andrew and Ellis, Allan, eds. Southern Cross University, Lismore, N.S.W, pp. 21-38.

Abstract

In the late 1990’s, online Business-to-Business (B2B) reverse auctions (E-RA’s) proliferated and were adopted in a wide variety of circumstances. The reverse auction format evolved to take advantage of Internet technology and reverse auctions have been identified by many large organisations as a tool to achieve substantial procurement savings. As companies adopt this technology it is important for them to understand the implications of this type of procurement. This paper adopts a case study approach to identify the issues for both buyers and sellers using this type of B2B application. It describes the conduct of multiple reverse auctions in a large Australian global company viewed through the eyes of the buyer undertaking a reverse auction. The main finding of the paper is the keen acceptance of the E-RA model and its ability to drive down costs across the procurement process.

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