Setting the stage for successful electronic reverse auctions

Based on case survey data, this article provides a framework to help organizations evaluate if electronic reverse auctions (ERAs) are likely to be successful in terms of product cost reductions. The results of logistic regression and correlation analysis underline that it is vital that the product o...

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Bibliographic Details
Published in:Journal of purchasing and supply management Vol. 10; no. 1; pp. 11 - 26
Main Authors: Wagner, Stephan M, Schwab, Andreas P
Format: Journal Article
Language:English
Published: Elsevier Ltd 2004
Subjects:
Case survey
Electronic procurement
Electronic reverse auction
Logistic regression
Purchasing
Logistic regression
Electronic procurement
Purchasing
Electronic reverse auction
Case survey
ISSN:1478-4092, 1873-6505
Online Access:Get full text
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Summary:Based on case survey data, this article provides a framework to help organizations evaluate if electronic reverse auctions (ERAs) are likely to be successful in terms of product cost reductions. The results of logistic regression and correlation analysis underline that it is vital that the product or service to be auctioned can be properly specified and that the companies must spend sufficient time and effort to carefully analyze, understand and, if possible, increase competition among suppliers participating in an ERA. Further recommendations how to instill competition are provided. Organizations should be aware of these conditions and focus purchasing measures prior to an auction accordingly.
ISSN:1478-4092
1873-6505
DOI:10.1016/j.pursup.2003.11.001