Supplier Selection at Casturn Systems (B): Strategic Implentation of Electronic Reverse Auctions

by: Damian R. Beil, Izak Duenyas

Publication Date: April 19, 2012
Length: 14 pages
Product ID#: 1-429-249

Core Disciplines: Operations Management/Supply Chain

Partner Collection:

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Teaching Note

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Despite initial concerns about the electronic reverse auction process, Casturn Director of Control Systems Miguel Haro decided that he was going to put all his weight behind the initiative and ensure that it succeeded, even if it was only to answer all the questions about how to run auctions. After a series of initial missteps, Haro began building a convincing business case for the auctions. A strategic mistake would erode any remaining support for auctions as a sourcing tool.

Teaching Objectives

After reading and discussing the material, students should:

  • Identify the product categories that are suitable for the electronic reverse auction process.
  • Indicate if online auctions should have a reverse price, and if that price be visible to suppliers.
  • Examine if electronic auctions should be a dynamic event or a single-shot (best-and-final) tender.
  • Describe the optimal setup for electronic reverse auctions.