Research On The Applications Of Online Reverse Auctions In Sourcing Activities

Compared to the more and more prevalent application of online reverse auctions in sourcing activities, research on this field is relatively insufficient, having no uniformed definition exist yet. The author gave out the definition of online reverse auctions through literature review and clarified possible doubts and problems regarding the conditions of online reverse auctions, application mode and implementation process.To begin with, the author summarized the relevant definitions related to online reverse auctions, including forward auctions, traditional procurement method and physical reverse auctions. In addition, the author summarized the current status and the problems encounter with the applications of reverse auctions. Based on these two aspects, the author brought out this research topic and defined the focus points of this thesis.In chapter two, the author worked out the definitions for online reverse auctions through literature review of the definitions of online reverse auctions and also the literatures related to the definitions. In chapter three, the author gave out the solutions for posed research topics, including the conditions for reverse auctions, the application mode-how to combine reverse auctions with RFX (RFP/Q/I), how to implement reverse auctions and also the specific questions related to the process, such as the numbers of suppliers invited, how long reverse auctions should last, how to determine the price decrease, etc. All the solutions for the related questions are based on the literature research and interviews with experts and practitioners in this field. When it comes to the verifications, the author explained the applications of reverse auctions in a multinational company, giving details on what kind of preparations need and how to interpret the results. The data provided are treasures for the following researches. In addition to the process and results illustrations, the author summarized the bidding strategies of suppliers in an open and soft-close reverse auction and the potential risks and problems of online reverse auctions, of which both the researchers and practitioners should be aware.