E-bidding fails firms - Embedded.com

E-bidding fails firms

The number of online electronic component auctions is rising fast but the process is not as simple as it should be, according to Lee Nye, division manager with Omron Electronic Components Europe.

“We have been involved in four auctions and not one has kept to the rules on engagement,” Nye told a meeting of Afdec, the UK distribution association.

Using the 'e-bid' system has brought significant gains for Omron, but Nye says that post-auction negotiations have been necessary to complete a deal.

His concerns echo those of other auction participants. Many believe that extra negotiations after an auction mean e-business is not delivering anticipated savings on transaction costs.

In this context, Nye believes that direct relationships with buyers remain important: “The point is that there is a 'relationship chain' as well as a 'value chain' – which is not necessarily an obvious one.”

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