Developing Forward and Reverse e-Auction with Alert Support in a Web Service Environment

Developing Forward and Reverse e-Auction with Alert Support in a Web Service Environment

Mandel Wai Man Chan (Department of Computer Science, Hong Kong University of Science and Technology, Clear Water Bay Peninsula, Hong Kong & Department of Computer Science, Hong Kong Baptist University, Kowloon Tong, Hong Kong), Dickson K.W. Chiu (Faculty of Education, University of Hong Kong, Pok Fu Lam, Hong Kong) and Ada Chi Wai Chung (Faculty of Education, University of Hong Kong, Pok Fu Lam, Hong Kong)
DOI: 10.4018/IJSSOE.2015040105
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Auction is a common competitive business-to-business (B2B) procurement procedure for supplying products and services, which are solicited, received, and evaluated. Currently, most auction portals support only forward auctions with interactive Web portals, while large companies usually construct their own reverse auction Websites. To provide a unified and more comprehensive solution, the authors develop an E-Auction System (EAS) to provide both forward and reverse auction support in a Web services environment. Buyer and sellers can post their requests via automated Web services for better Enterprise Information System (EIS) integration. Alternatively, they can manually browse the portal with a browser to post requests or submit their bid prices. Their EAS also provides an auction-matching function that automatically matches forward and reverse auction records to help completing business processes effectively. Further, their EAS's CRM system can capture and analyze user bidding behavior and posting to provide personalized Webpages. Besides, alert services provide notification of auction and bid statuses to customers for efficiency.
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Many manufacturing companies periodically need to dispose of unusable or excess inventory, or want to sell a large amount of products with reasonable prices. Online forward auction is now a logical choice for these inventory liquidation and product selling activities as a new and more efficient channel, the Internet. Larger enterprises often create their own auction sites for selling excess inventory or products (Zeithammer, 2006).

One of the earliest examples of company B2B auction Websites is Ingram Micro (Kaplan & Sawhney, 2000), a major distributor of computers and related equipment to value-added resellers. As computer technology changes rapidly, Ingram Micro often finds itself with outdated items that it formerly turned over to liquidation brokers. Ingram Micro therefore auctions those items to its established customers through its internally operated Auction Block site. Auction volume reached over US$6 million per year.

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