"One of the big advantages, other than securing a lower price, is the ability to speed up the whole process."



"Depending on the channel, an online auction opens up the tender to more suppliers, including foreign suppliers. Obviously this can have drawbacks, but it has advantages too. It also allows for quick culling of the suppliers to go through to the next stage if the cost is not competitive."



"Online auctions are extremely time-saving. Price is an extremely important factor, as this is what drives the auction, but it doesn't necessarily drive the final decision."



"Clearly price is the whole point of an e-auction - a business tender that allows the buyer to see a potential instant cash cost-saving. The drawbacks are that suppliers will buy business for short-term gain and this one, main, problem can lead to a whole host of others."



"I will usually only use online auctions for tertiary brands, where price is the key factor."



"Price is obviously key but I wouldn't agree for a supplier to enter an auction unless I was happy with the product quality and the ability to supply the volumes we need to this quality consistently."



"Suppliers are becoming less concerned about many aspects of online auctions. Original concerns about product quality, for example, have died down now that they have experience of the process and the way we use the tool."



"There is a small risk of depersonalising the relationship between buyers and suppliers, but if suppliers have been visited to view production facilities, NPD capabilities and so on, then the elements that build a relationship through a more standard tender are still in place."



"They don't affect relationships, as there is more than enough contact in the day-to-day running of the business to build a strong relationship."



"It is much less personal and many suppliers will tender low costs, but with an extremely poor product or a deal they can't deliver. Unfortunately, these risks are not likely to go away."