Electronic Reverse Bidding Procurement In Asia, Analysis And Discussion

ERA (electronic reverse auction) as a procurement tool was used in many developed countries ever since invented by Free Market company in 1995 owe to the advantages of high process transparence, short operation cycle, strong repeatability and most importantly strong capability to reduce the cost. During Recent years, along with globalization, developing countries especially in Asia also start to embrace this tool and use it more and more in daily procurement operations. This paper studies the problem that Tyco international Asia purchasing team encountered when running ERA projects. Explore the possible reasons and solutions, then verify the solutions through practice.First introduced the ERA theory and developing history, then wrote about the Tyco Asia purchasing working profile and Every key process of ERA. Followed by study of four key problems regarding application of ERA in Tyco Asia. Namely project goal setting, project timing plan, project scope setting and project follow up plan. Five new process guidance were developed through the study and verified by practice in Tyco Asia ERA projects. Hope the outputs of the study be beneficial to other companies that also using ERA in Asia to improve purchasing performance.