Indian companies have been reluctant to introduce e-auctions to their arsenal of procurement tools. But with the right preparation and execution, significant savings can be achieved while still maintaining supply stability.

Over the past decade, companies around the world have focused on automating business processes. One example of such automation is e-auctions, an arrow in the quiver of advanced sourcing techniques that enable global corporations to significantly reduce external spend while streamlining procurement processes. In India, many midsize and large enterprises have begun to conduct e-auctions, though in our experience most have found it difficult to achieve their full potential due to the inherent complexity of the process and the limited readiness of the supplier ecosystem.

Today, the explosion in the number of suppliers, mushrooming Internet access, and the growing need to manage the bottom line are creating a perfect environment for more Indian companies to jump onto the e-auction bandwagon. But first they must overcome the perceived challenges and find the proper fit for e-auctions in their overall procurement strategy to realize the full impact and make it sustainable. It is essential not just to adopt the tools, but also to understand and adjust the implementation nuances to get it right.