The ski slope to prosperity: an analysis of the potential impact of reverse auctions in government procurement in five Southeast Asian nations

In: Asia Pacific journal of marketing and logistics, Volume 15, Issue 3, p. 3-19

Abstract

The Institute for Supply Management recently declared that the cost savings and efficiencies to be gained through e‐Sourcing can provide benefits not only to individual entities that use them for the acquisition of goods and services, but in the aggregate, to the economy as a whole (Davies, 2002). This study examines the potential impact of strategic implementation of e‐Sourcing in public procurement in Southeast Asia. The results of the study demonstrate that the use of competitive bidding events, popularly known as reverse auctions, when used as part of an overall e‐Sourcing program, can have demonstrable economic and budgetary benefits. Using governmental data supplied by the Asian Development Bank and the World Bank and employing proven econometric methodologies, the study shows that their would be vast differences in Asian economies as a result of the effective use of competitive bidding events as part of an overall e‐Sourcing strategy. We conclude by presenting an action plan for implementing an e‐Sourcing strategy for acquisition practices.