Over the years, e-auctions have developed into a bidding approach with wide applicability and acceptability in the procurement industry. This is borne out by the usage statistics.
At Scanmarket, we have seen dramatic increases in e-auction usage including more than 100% increases in events consecutively since 2017. Several factors have led to this increased adoption, acceptance and usage:
- eAuction software platforms are significantly more advanced with advanced functionalities for processing information and feedback.
- Much more information is available to make e-auctions better including standardized processes that emphasize bidder inclusions, information and transparency.
- New strategies have been developed to make e-auctions work well in new areas such as limited supplier competition, factoring for non-price variables, switching charges, and alternative e-auction formats such as Japanese and Dutch.
- Non-savings benefits such as compliance, audit trails and greater overall efficiencies have encouraged e-auction usage.
- Statistics and intelligence are now widely available to help users identify likely categories for based on current market trends and what’s been successful for others
- New categories in services, transportation and others have become hotbeds for e-auction activity.
- Process improvements have made it easier for bidders to participate which means more savings for buyers.
- It used to be that an event needed to be perfectly suited for an e-auction. Now, more companies are using e-auctions by default.
Changes in technology have opened up the accessibility and adoption of e-auctions. eAuctions should be used by all organizations as an important part of their overall eRFx program. While they’re not suitable for every project, they’re appropriate a lot more times than most people think.