E auction by nader abu hadeed

E-Auction

"What is an e-Auction?

E-Auctions had different uses. It can be used in business market where the goods and services sold are valuable (like art) or when their real price can't be easily determined. Big organizations also used it the procurement organizations like councils and municipalities. Also, it is used for car sales market for used and classical cars.

How does e-Auction work?

The goal of an auction is to find a perfect price for the goods by connecting buyers who need them the most, with sellers, who need to make profit. You can make the bidding process electronically using special software or website.

What are benefits of e-Auctions?

E-Auction benefits the user of negotiation of contracts between suppliers and buyers in less time and cost process.   Conducting with contract negotiations live in the internet, the process is faster than the normal negotiation process, and as a result the bidding process cycle is significantly reduced it save over 30% in time and therefore cost of process. The main benefits of eauciton are as follows:

1.     Paper elimination and long time processes

2.     Negotiation is shorter

3.     Money procurement is perfect

4.     Transparency of the contract increased award process

What are the main costs of E-auction?

E-Auction requires must prepare product details specification; where completion about the price only, it is very important inform a clear product specification and service as it will help bidders and suppliers in their bidding. Also, some organization must involve in suppliers with o recruiting – in taking part in electronic e- auctions some suppliers are not experienced and therefore may not be immediately willing to join in.  Also it is costly of training suppliers how to use software or website.

it may requires, organization to  pre-selecting the suppliers In addition in a full tendering process so that all the suppliers are acceptable of taking part in the auction and have the ability of delivering pricing  or supplying in e-auction

When to Use e-Auction?

In general, e-auction should be used either when buyer have full information about the goods that advertised under auction and the completion are for perfect price and when fair value for that good can’t be known. Some entities put a base price (minimum price that you must bid above) so all prices must be above based price. In procurement of goods e-Auction can be used when buying an undifferentiated products when similar products or product specification are the same and available and the competition is on price. Where value is determinate by the technical proposal there are others used for Auction bid prices is not the main issue when companies seek the best value solution for the solution offered and the price.

As a conclusion we can notice that our time limited direct us of using the E auction that make our information of goods and services about price or specification is much wider and taking the decision wiser with the best price that we can get".

Resources: www.mjunction.in , http://www.idea.gov.uk