Source One Offers Free Reverse Auction Software
Source One, a procurement consultancy, has released a free reverse auction application that anyone can use by logging onto www.whyabe.com. While not open source, the Why Abe application combines marketplace-like elements with basic eRFX and sourcing capabilities which are free to both suppliers and buyers alike. What's the catch, you ask? They're really two, as I see it. First, usage is not private and information is shared with Source One, the site's owner, unless a specific one-off usage deal is worked out. But given the free nature of the application, this only seems fair. Second, the functional capabilities appear to be rudimentary relative to what other traditional providers offer. Clearly, Why Abe is an event-driven sourcing tool that is not designed as a more strategic process management platform (at least not yet). While I have not yet gone through a full-demo yet, from what I can see, the application reminds me of the original ebay-esque self-service reverse auction applications from the mid to late nineties. Bay Builder, anyone?
What's my takeaway at this point? It's too early to say. I'm talking to Source One again later this week to learn more about the application and what types of customers are using it. But in general, I love the notion of free applications such as Why Abe shaking up the e-sourcing market, even if IP concerns prevent some users from trying it. In my view, applications like Why Abe will force pure-play e-sourcing providers to innovate to justify their place in the market -- especially the middle market -- over free alternatives.
- Jason Busch
What's my takeaway at this point? It's too early to say. I'm talking to Source One again later this week to learn more about the application and what types of customers are using it. But in general, I love the notion of free applications such as Why Abe shaking up the e-sourcing market, even if IP concerns prevent some users from trying it. In my view, applications like Why Abe will force pure-play e-sourcing providers to innovate to justify their place in the market -- especially the middle market -- over free alternatives.
- Jason Busch
I think that you are missing the point about the software altogether. I work for a small engineering firm, and we have had many businesses try to sell us on the ROI of their various e-sourcing software packages in the past. But when you do not have the staff to support a implementation, have a small spend, or do not want to go through a long implementation period, there is ZERO return on investment, and you may actually lose money on purchasing a solution.
We have also found that most providers try to force you down a methodology or procurement process that simply does not fit with our business. Using this site allowed us to simply plug in the software in the necessary place in our own process, and elimintated the need to train our staff on entirely new process.
Our company is happy that someone is providing some sort of tools, especially when you come from nothing.
Did you try their demo?
It is a huge mistake to think that a Procurement Service Provider does exactly what a piece of software or e-sourcing tool does. If that were the case, there would be no need for procurement or supply chain consultants.
Processes and electronic tools can supplement a solid procurement department, but are in no way a replacement for true strategic sourcing. Strategic Sourcing and Supply Chain Management is an artform unto itself. The same "7 steps" used in different companies in the same market will always produce different results. The same is true of the use of e-sourcing tools. While the tools are definitely beneficial to an enterprise, they cannot be relied on to produce the best consistant result for anyone.