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Obsessed with how companies manage, spend and save money, Jason writes about procurement, trade and supply chain issues @ Spend Matters. He has significant first hand experience developing and marketing technology and services products, has advised numerous companies on sourcing and related techniques as well as M&A pursuits.  In previous lives before tech, he was a management consultant and merchant banking analyst.

One response to “Trading Partners: Does Restructuring Portend Changes in the Reverse Auction Market? (Part 1)”

  1. nickdruz

    I recall Peter Smith stating in the previous article that he wonders if “the narrowness of the product range offered by Trading Partners is an issue”. At first, I believed that this was one of their strengths, as it is easy for the market to understand the brand and the offering, in comparison to some of their competitors who offer a multitude of products under the procurement umbrella, many of which involve comments on their websites along the lines of “speak to us for more information”, in other words “we can’t possibly describe to you in layman terms what it is that we offer”. A cynical view no doubt, but I can understand why it may frustrate potential customers. I do like the way that Trading Partners have attempted to overcome this.
    However, I worked as a Project Manager for a strategic sourcing and cost reduction consultancy for 5 years and during that time I noticed that more commonly the clients would use us to run the first e-auction, after which they wanted their in-house team to be trained to run their own using our software. This market shift towards a commoditised solution is something that I think will really come to the fore over the next few years in this market, particularly with all the buzz surrounding SaaS and “cloud computing”. Companies such as http://www.marketdojo.com and http://www.ariba.com are certainly two companies that come to mind that are looking to carve their own way through this approach. It will be interesting to see if Trading Partners and other follow down this path.