Etiket arşivi: e-satinalma

E-Auction in the cloud system

E-Auction in the cloud system

Cloud computing has recently emerged as a new computing paradigm that enables prompt and on-demand access to computing resources. This is exemplified in Amazon EC2 and Microsoft Azure. Cloud providers invest substantially into their data centre infrastructure, providing a virtually unlimited “sea” of CPU, RAM and storage resources to cloud users, often assisted by virtualization technologies. The elastic and on-demand nature of cloud computing assists cloud users to meet their dynamic and fluctuating demands with minimal management overhead, while the cloud ecosystem as a whole achieves economies of scale through cost amortization.

Cloud computing is usually large-scale, distributed computing leveraging Internet-accessible data centres that provide computing resources as cloud. Modern Internet applications are designed using the virtualization technology in the cloud computing environment. Such cloud-based Internet applications are deployed on virtual machines (VMs), also called instances whose resource requirements are pre-configured.

Latest developments in cloud computing technologies have enabled a plethora of cloud based data storage services (e.g., Amazon S3 [1], Dropbox, Google Drive, SkyDrive et.c.) Cloud storage service has gained widespread recognition and adoption by Internet users, many of whom now routinely execute online storage and online backup tasks over the cloud.

In similar vein cloud based auctioning is becoming increasingly important as part of the strategic sourcing process because this allows you to track all aspects of an e-auction, including actions taken by both sellers and bidders. This automated auction processes puts companies ahead in time and also simplifies the entire cycle of activities. Some of the great features of a cloud based auction system include;

  • No investment is required for cloud based E-auction.
  • It’s a Pay per use utility
  • You can prepare, manage and end auctions on it.
  • It allows you to run an auction via the web and podium simultaneously.
  • It reports cost implications, cost reductions etc, and lots more.
  • Return on investment is high
  • Cost is based on yearly license

Usually, a cloud based auction system manages the entire auction process. This makes it simple to set up online auctions which are intuitive to use by both buyers and suppliers, meaning that little training is required. Auctions can be open to all verified suppliers or focused on specific groups. Buyers and sellers can monitor their auctions in real time via an online dashboard. This is accessible in the office and on the road via tablet and smart phone. cloud based auctions also features a bidding timer which counts down until the auction ends. All parties can see the competitive bids as they are made via graphical and tabular displays. Suppliers execute their bidding strategy online, choosing when and how much to bid in relation to their competitors, until the auction ends and closes to inputs.The system also documents the auction process and keeps an audit trail to ensure your organisation can answer any retrospective queries or challenges.

Pay per use utility in the cloud system makes it suitable for experimenting on how it can accrue benefits to the business before it is fully adopted. In most cases buyers can test the functionality through demos, which are generally free for one time e-auction, allowing users to practise creating an event prior to purchasing a license.

Despite these numerous benefits associated with cloud based auctioning, the system is still not without its shortfalls and the two most significant of these are:

  • Firstly, the storage service highly depends on centralized data centres in the cloud, accidents and natural disasters (fire, earthquake, power outage) will have significant impact on the service performance.
  • Second, the cloud storage providers face significant cost in purchasing or renting real estate, cloud infrastructures, hardware, power and network bandwidth.

CONCLUSION

Buyer-assisted cloud storage is emerging as new, exciting hybrid architecture for online storage systems that represent a potential win-win solution for both cloud storage providers and cloud users. Online procurement auction for resource pooling by the provider which serves as a financial catalyst for bringing buyer-assisted cloud storage into reality is gradually becoming the norm. Procurement organisations that want to create a structured process around eAuction must adopt this system in order to stay ahead.

Understanding the Basic Procedures Involved in E-auction software

In every e-auction software or electronic auction event, bidders and auctioneers conduct business on an electronic marketplace. The process is quite simple. The main requirement is an auction site. Commodities, goods, or services are offered by the auctioneer, and bids are submitted by anyone who is interested in the product. The offer is usually given for a limited period only. Buyers and suppliers utilize this platform to negotiate terms of contract. The interactions available include business to consumer, business to business, and consumer to consumer.

Despite widespread practice and participation from members of the buying public and the community of sellers, there are a few recognized limitations of e-actions. There are issues related to security and the possibility of fraud. Moreover, the process has a long cycle time. Concerns about auction software and equipment for buyers also arise periodically

What are the basic types?

There are two major types of e-auctions, namely forward auction and reverse auction. The more common practice that occurs online nowadays falls under reverse auction. This procedure involved reversal of the typical roles of buyers and sellers. Instead of a single seller offering a product or service to competing buyers who bid the price upward, which is what forward auctions are all about, the prices decrease as sellers compete to obtain something that they covet from a buyer. The sellers try to undercut each other and this is why prices get lower as the process continues, instead of getting higher.

What is a traditional RFQ or request for quotation and how is it relevant to e-auctions?

Purchasers need to accomplish a document known as the RFQ or request for quotation so that they can obtain offers for products or services. The data included in this document are item price, terms of delivery, and other relevant conditions surrounding the specific product. Essentially, the RFQ is a document that must be submitted by an organization to suppliers as a means of eliciting quotations.

Traditional RFQs are still used; however, the procedures associated with these documents are often tedious and labor-intensive. Online RFQs are preferred because they are easier to process and less prone to error. They are also more efficient. A request for quotation is a solicitation document is necessary in both a negotiated purchasing process and in a firm-bid purchasing process. If the requirements are more complex, another document must be used, and this is known as the RFP or request for proposals.

In the dynamic bidding process, activation of the RFQ is the signal for suppliers to submit their bids. While the RFQ is active, the initiator has the prerogative to review the current bids. The alternative option is to wait until all the bids are received. Bid evaluation for simple RFQs may be conducted online. For complicated RFQs, the evaluation is usually done offline. The RFQ process is completed only when the winner of the bid has been determined.

E-auctions are increasing in popularity these days since both businesses and consumers find the process advantageous for them. Other terms used interchangeably with e-auction are e-sourcing, sourcing event, procurement auction, and e-procurement.

eSourcing and eProcurement Software, Don’t just buy it, Use it!

We all have different criteria for what we think deserves our money. If your goal is to save any money at all, however, one rule can always help: if it’s going to end up in a junk drawer or cupboard, just don’t buy it. Most organisational change programmes fail to achieve all of their objectives. There’s no single reason for this – lack of leadership, poor planning and unreasonable timescales can all contribute. But often the failure comes down to taping into the inability to engage the workforce or senior team (or both) with the change. And this often boils down to poor communication.

For eSourcing devotees, the benefits of using eSourcing are well known. eSourcing has a long and proven history of providing improvements in savings, efficiency, cycle times, transparency and compliance. However, there are still parts of your business that haven’t “seen the light” such as exposure to the benefits of eSourcing tools and techniques. Resistance to e-Sourcing can be reduced by clearly communicating the shift to a collaborative sourcing technique with a focus on process transparency and quality, knowledge sharing, interaction with stakeholders and to ensure that they follow strict rules and stick to commitments.

Given the technological advances and results reported by the eSourcing pioneers, it is somewhat surprising that these tools are still not pervasive throughout Fortune 1000 companies. Research by A.T. Kearney shows that while more than 75% of companies report that their procurement organisations have used these tools at least once, only a small fraction report using them in any significant way (Defined as more than 200 RFXs or reverse auctions per year). Fewer than 5% of companies report having reengineered their sourcing process to fully embed and leverage these tools. The story is no brighter on the sales side where only a few companies may have introduced these tools with great fanfare; they neither changed their business nor trained their staff to use them effectively. Highlighted below are some of the best practises that can enable an organisation deploy and successfully integrate an efficient eSourcing system.

Best Practises

  • Establish a centre of excellence:

Ensure to set up a centre of excellence from which you deploy eSourcing tools, starting small with highly visible pilots and very quickly training power users (rather than relying on external partners) to support other users. This helps you to invest significant time and funds towards training activities. Companies also need to design and implement a comprehensive change management strategy for how to deploy the tools more broadly while encouraging adoption.

  • Build a Meaningful governance Model:

Governance is vital to supporting and guiding a new programme, engaging stakeholders and defining the “rules of engagement” can be used to change the conversation from one of “prove to me why we should use these tools” to “prove to me why we should not

  • Design and Deploy Metrics:

Measurement is very essential. Defining targets of the programme and tracking progress against those targets ensures that these targets are translated into individual annual performance for stakeholders and sourcing team members. These metrics should go beyond tracking savings to also include the number and types of events completed, the number of suppliers and stakeholders engaged , supplier compression achieved: among others.

  • Adhere to Highest Ethical Standards:

Learn to focus on the design, deployment and maintenance of these programmes, never giving suppliers or stakeholders any reason to question the integrity of the process or how the tools are deployed. Although mistakes can happen, there should never be any appearance of unethical practises. One of the advantages of eSourcing tools is the audit trail they provide, take advantage of it!

Pitfalls

As with all change efforts, one does not often achieve success without first encountering a few failures along the way. Understanding where the potential pitfalls are and how best to navigate them can help de-risk a new programme.

  1. Say No to pay-per-use:

Charging stakeholders for the cost of the technology or the sourcing staff’s time to support the technology is a bad idea. For the most part, stakeholders view these eSourcing tools as a risky proposition to start with, so charging them a hefty fee to use them can stop the programme before it gets off the ground.

  1. Don’t wait for people to opt in:

This is a recipe for disaster. Success depends on programme metrics tied to individual performance metrics that clearly communicate expectations.

  1. Forget the Flavour of the Day:

Merely rolling out the tools and some directives on how to use them will make the programme just the latest flavour of the day. Investments should be a long term, holistic change management programme in order to encourage use and adoption of eSourcing tools.

  1. Resist supplier Push backs:

Change is difficult for most people so do not be surprised if suppliers push back and try to circumvent, postpone or eliminate the process. Companies that stood Firm in their commitment to the process and tools and invested resources to communicate this stance to their suppliers were able to get past this hurdle. More suppliers have realized that access to these eSourcing tools provide them with access to critical information needed to compete for existing and new business.

In Conclusion

The past 20 or so years have been an exciting time for procurement leaders. Companies that Invested    in eSourcing tools to automate transactional activities and negotiations in order to reduce sourcing cycle times are well positioned to take their organisations to the next level. For those that have not, and are now in the catch up mode, consistency and perseverance seems to be a big problem as regards deployment and successful integration of these tools into business procurement operations. Procurement leaders have done a great job charting a roadmap to success, identifying best practises to emulate and pointing out the pitfalls to avoid, so you don’t have any excuse why not to take full advantage. Why not get on board and see how e-sourcing tools could change the outlook of how you do business, but remember; it’s not enough to deploy it, you must see it through till the end. Don’t just buy it, ensure you use it.

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