Research On The Online Reverse Auction In The Enterprise

Procurement has always been a relatively weak link of Chinese business management, various defects of the traditional procurement lead to inefficient and high costs, lots of resources-consuming not only make the costs can not be effectively controlled, to some extent also cause a waste of corporate allocation, which will undoubtedly hinder the development of enterprises. Today, these problems have been gradually highlighted in the market competition, and caused the companies'attention, therefore, how to purchase more efficient convenient and economical, has become an urgent need.Online reverse auction has updated the tradition and brought lower costs and higher efficiency, which is worth for research. This paper tries to study on this new procurement model and hopes it can be better used by China's enterprises to achieve the efficient procurement.First we introduce the concepts and theory of online reverse auctions, analyze its advantages compared to the traditional procurement, sum up the conditions of successful implementation, and based on which, the author puts a special emphasis on its application in companies. Next, the paper describes the specific implementation process in detail, discusses the risk and the impact of the relationship between the two sides of the transaction, then gives further explanation and analysis through the Motorola's case. In the last part, the article collates the current application situations of online reverse auctions in China's enterprise, advances the corresponding solutions against the existing problems, as well as presents proposals about its development in China, and points out the importance of e-commerce service provider to the development of online reverse auction. The author believes that the e-commerce service providers can promote the development and application of online reverse auctions in China's enterprises.