Master Class Moment
What are E-auctions? Does this work in any supplier category or just hotel?
Eauctions are where we (the buyer) defines the service we need (specification) and in what numbers and invite suppliers to bid for the volume. This would be a reverse auction where cost comes down and encourages suppliers to reduce price in order to 'win' the volume. Think ebay but in reverse!
Theoretically you can eauction anything at all, but it will really only work if you've (correctly) identified the strategy as a 'leverage' category, Which is a category which is important to you in terms of spend, and there are a number of suppliers who can all deliver the same product or service. If you attempt to e-auction something which is for example 'strategic differentiator' category (which is defined as a category where a very small number of suppliers can provide what you need), then its unlikely e-auction would work as suppliers would possibly 'no bid' knowing they would get the business anyway. Plus competitive auctions only work if you have more than one bidder.