My British colleague across the pond, Peter Smith, recently penned a succint post highlighting an interview he had with a fellow UK procurement executive that suggests some of the reasons reverse auction usage is not more prevalent. Incidentally, I’m looking forward to seeing Peter next week at a launch party for this new book on buying professional services next week in London. But since I’ve yet to get my hands on a complete copy of his text, I’ll save my commentary and review for another series of posts later in the summer and get back to the subject at hand: reasons for reverse auction adoption slippage.
In his post, Peter shares a bit of commentary from colleague Jonathan Rollason, a former public and private sector executive with a CPO-laden resume who now runs a small “e-auction” consultancy. According to Jonathan, one of the main reasons procurement organizations shy away from reverse auctions is because they “sometimes lack the confidence to run them.” Moreover, he “believes procurement people are often scared of running auctions because they might expose how badly they are currently buying!”