Guo: Reverse procurement, the development of E-commerce milestones

&http://www.aliyun.com/zixun/aggregation/37954.html ">nbsp; With the increasing globalization of economy and the development of information technology, electronic procurement, as an effective means to strengthen cost control in enterprise groups, has been applied by many large enterprise groups, in which electronic reverse procurement has become an important electronic procurement tool. Electronic reverse procurement, also known as electronic reverse procurement, means that suppliers (sellers) compete with each other to win contracts through the Internet by submitting bids for lower prices over a specified period of time, and the procuring entity (buyer) determines the final ranking in accordance with its quotations and other predetermined criteria, and further, according to the auction result, a procurement procedure is awarded to the contract.


reverse sourcing expands the scope of supplier selection, improves the overall level of suppliers, enables buyers to obtain better suppliers at low cost through reverse sourcing, and reduces seasonal fluctuations in the original supply market and facilitates the search for a more stable supply source portfolio.


reverse procurement improves transaction efficiency. The negotiation between the purchaser and the supplier is not limited by time and space, the price is the main factor of the reverse purchase, the enterprise obtains the low resources through the reverse purchase, the new supplier strengthens the competition of the supplier, and the competition makes the purchaser gain more profits. The reverse purchase saves the negotiation time of the parties, improves the speed of purchasing decision, reduces the cost of purchasing management, reduces the inventory level, shortens the purchasing time and accelerates the cash flow. Compared with the traditional process, the management cost is greatly reduced.  It is found that reverse purchasing usually saves 5%~20% cost and 25%~35% management cost.


reverse procurement enhances the buyer's control over suppliers. Due to the small amount of procurement of some projects, short procurement cycle, in the negotiations with suppliers often at a disadvantage, have to accept the price of suppliers. However, with the popularization of the network and the emergence of reverse procurement, the purchaser can have a common procurement needs of small procurement project portfolio procurement to achieve large-scale centralized procurement. 　　 As long as the purchase amount of reverse procurement is large enough, the resulting profit is enough to attract a large number of suppliers to bid competition, it may be a preferential purchase price to reach a deal contract.


Increase the transparency of procurement, effectively ensure that the competition is fair, fair and open. Due to the implementation of reverse auction on the Internet, the various standards for the purchase of goods, bidding rules, as well as the price provided by suppliers are publicly displayed, and the whole process is subject to the attention and supervision of all parties, so the opportunity to practice favoritism is greatly reduced. And in the traditional procurement, all things are handled by the person personally, the subjective things will affect the purchase decision making, unfair, unjust things happen.


reverse procurement is a great challenge to the original supplier relationship management. Reverse procurement reduces the buyer's reliance on suppliers, allows more suppliers to participate in the bidding, expands the selection of suppliers, on the other hand, reduces the bargaining space between suppliers, so that the buyer is in a dominant position. Buyer uses reverse sourcing to establish new supply chain and integrate supplier relationship. 　　 The purchaser chooses more competitive suppliers in the bidding suppliers to achieve dynamic supplier management and improve the overall level.

Negative effect of
on supply and demand relationship:


some suppliers in order to bid the price is low and low price bid, but led to the successful supplier of services and the quality of the decline. The buyer pays too much attention to the price of the product or service and ignores the consideration of other factors, resulting in the unsatisfied part of the product or service provided by the supplier.


reverse procurement is a price-oriented procurement mechanism, which is not conducive to the long-term development of supply and demand relations. The Purchasing party applies reverse procurement to realize supply chain dynamic integration management, but it is easy to cause dissatisfaction to suppliers due to the suspicion of squeezing suppliers ' profits, which may lead to the loss of trust. In order to win the bid, the supplier has to disclose the private information such as cost advantage in the competitive bidding process, and the reverse purchase forces the enterprise to expose more competitive information, which is obtained by competitors at low cost, which may adversely affect the future supply market.

Suggestions on the development direction of
reverse procurement


comprehensive analysis of domestic and foreign scholars of the latest research results, combined with China's national conditions, the author of the future development direction of reverse procurement is discussed as follows:


Pay attention to the application conditions of reverse procurement to ensure the success rate of trading. The research shows that the reverse procurement is easy to succeed under the following conditions: The supply market of the reverse purchase price exceeds the demand, and the purchaser grasps the cost composition and the key indexes of the purchase target. The purchaser is able to provide a clear and detailed description of the procurement requirements and to ensure that the requirements for the purchase bids are sufficiently comprehensive and detailed. 　　 The application of reverse procurement has its applicable conditions, must not be abused.


to strengthen the management of procurement information to ensure fairness and impartiality. The purchaser must ensure that the procurement process is open, fair and impartial and ensures the confidentiality of the supplier's bid information. It is very important for the buyer to send the bid information, and the purchaser must let each bidding supplier believe that they are likely to become the successful bidder. The purchaser must ensure that the selected supplier is based on reverse sourcing results. The purchasing process must guarantee fairness and impartiality, guarantee the privacy of the non-public content of the supplier's bid information, make the information open to the result of the bid, and strengthen the information security management measures.


Electronic reverse procurement makes the procurement decision based on more information, more equitable procurement process, procurement information exchange and transfer faster, procurement management monitoring more effective, procurement work intensity reduced, efficiency improved, purchase price reduction, cost reduction, and supplier contact more convenient. It has been proved that online reverse purchasing has remarkable effect on traditional procurement mode, reducing cost, improving working efficiency, management level and competitiveness. However, due to the online procurement time is not long, coupled with electronic reverse procurement is still in the exploratory phase, a lot of things still need to be further improved. However, as a new technology, its advanced will bring great vitality to enterprises, with the development of network technology and computer technology, as E-commerce is more and more enterprises to accept and use, electronic reverse procurement will have a broader space for development. (Wen/Guo, expert member of China Internet Association)