Ebidding

[2] Based on the "Kraljic Portfolio Purchasing Model", the demanded products and services can be categorized by the two criteria „Profit Impact" and „Supply Risk".

As Roland Bogaschewsky describes them in his essay "Electronic Procurement - Katalog-basierte Beschaffung, Marktplätze, B2B-Netzwerke",[3] they are usually offered by many suppliers and are of little value.

Products and services which have a high Profit Impact and a low Supply Risk are categorized as "Leverage Items".

Based on the essay by Roland Bogaschewsky, there need to be enough suppliers for a successful auction and the effort only pays off when dealing with articles that have a high profit impact.

Therefore, Leverage Items are predestinated for eAuctions, creating a high competitive pressure which leads to lower prices.

Therefore, an eBidding is also suitable for items that rank higher on the Supply Risk dimension but are still offered by enough suppliers Researches into bidding practices showed in 2006, that industries in the UK still abide to the exchange of paper documents, but with knowing that there must be a better way, and that CDs and e-mails were not the best solution.

[3] An eAgreement includes, for example, the general rules of the eBidding, additional contract regulations and the terms of delivery.

The results of the eBidding are often part of an overall supplier rating, which leads to a final decision.