When it comes to online reverse auctions, some users may think their success depends solely on the technology. But not Samuel Dowell. The senior director of worldwide procurement for New York-based Pfizer has been conducting what he views as successful reverse auctions for more than four years and agrees technology is important, but says the "people issues"--both on the internal customer side and the supplier side--are significantly more important for success.
Dowell adds that Pfizer considers online auctions to be a tool, rather than a strategy. "We don't use them for everything," he explains. "They are coupled with our sourcing strategy. The auctions are one tool that we use in the strategy to create a competitive market space."
Source: Purchasing