Some FreeMarkets customers wanted to buy their own software and operate their own auctions for simpler purchases, such as office supplies, or commodities like sugar. To meet that demand, FreeMarkets has created a scaled-down version of its application. Some of our existing customers have signed up, but there's a broader market opportunity. With QuickSource, which FreeMarkets will host on its own servers, companies can upload a list of suppliers and the goods they sell, write a detailed request for quote and set up a reverse auction. The first version of the application can handle reverse and sealed-bid auctions in multiple currencies.
Bidding can take place for any amount of time.
Ramoutar said FreeMarkets' experience with running reverse auctions for six years will differentiate its product from those of its competitors. We have taken a lot of our know-how and intellectual property from running thousands of auctions and put it into a software and technology platform. But Michael Brown, VP of worldwide sourcing at United Technologies, which has been beta testing QuickSource, said his company will continue using both of FreeMarkets' offerings. For deals worth millions of dollars that involve finding new suppliers and conducting auctions in different languages, we'll continue to use the full-service option. QuickSource will be offered by subscription, with fees based on usage.