The combination of carrying out procurement of services and raw materials or inviting bids for contracts using online auction software and cloud computing has many advantages for both buyer and bidder.
The first is security if the organization uses an experienced and reputable provider of an online auction service. All documents that are generated by the tendering or bidding process can be stored securely in one location and accessed easily and efficiently with no risk of loss of an important document at a crucial stage in the negotiations.
Then there is the saving in time. Access to an online auction is available around the clock allowing bidders to place their bids at any time of the day or night within the time frame that has been set by the buyer.
Location, too, ceases to be an issue and a contract bid can be invited or submitted from anywhere in the world.
This may be useful for companies offering goods and services to consumers, who can bid online to buy a particular product and it enables the supplier to sell to a greater volume of customers than it could in a physical space such as a retail unit.
It also illustrates the added benefits of online auctions which are increased efficiency and a saving in cost, both staff time and if the service is provided by cloud computing also in the expense of in-house sophisticated hardware and back-up. With cloud hosting an organization only needs to buy the time it actually needs to use and tailor it to peaks or troughs of activity.
However, online auction software is most useful for procurement of services or inviting contract bids for large companies and public sector organizations. Companies supplying the online auction service to organizations like these invariably also offer a variety of auctions including the increasingly popular reverse auction that can help them to get the best price on a contract, but also additional consultancy services such as a spend analysis.
An experienced software supplier will also supply support services to help large organizations through the initial processes of internal culture change, training and set up of the system and will be able to tailor it to the specific activities of the organization It is supplying.
Switching to an online auction system needs to be managed properly during the transition but once the key people are properly familiar with the system and how to manage it organizations will notice a marked difference in the safety, security and efficiency of their procurement and contract bidding processes and a significant saving on costs.