Please use image provided to answer the following question:

Identify at least two differences between traditional purchasing and use of e-auction. How can Brandt use these differences to make his selection? What types of items would be best suited for purchase through e-auctions?

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Case Study | Snedeker Global Cruises It was August 7th, and Brandt Womack had just been given cruise line. The centralized purchasing strategy provided his first assignment by his purchasing manager at Miami-based many cost-saving opportunities for the company and greatly Snedeker Global Cruises Inc. It was the "E-Auction Develop- reduced the overall order costs of the company. The company ment Program" (EDP). The purpose of EDP was to identify wanted to continue to pursue ways in which the centralized potential products that could be purchased through c-auctions, purchasing practice could reduce costs, and e-auctions became determine the necessary steps to conduct a successful e-auction, a viable option. However, senior management at Snedeker was and assess the impact of e-auctions on supplier relationships. As concerned about the impact on quality and the effect e-auctions a newly hired supply chain manager, Brandt wondered how to might have on suppliers. proceed. At Snedeker, the purchasing cycle began with a master Snedeker Global Cruises incorporated in 1986 and is a forecast for the upcoming year with orders being placed 8 to 10 cruise company with 35 cruise ships and over 70,000 berths. months prior to need. This master forecast included everything Snedeker Global serves the contemporary and premium seg- from replacement engine parts to chocolate mints placed on ments of the cruise vacation industry and offers a variety of pillows in cabins. When the forecast was generated it was itineraries to destinations worldwide, including Alaska, Asia, given to the Senior Purchasing Manager, Kasey Davis. Kasey Australia, the Caribbean, Europe, Hawaii, Latin America, and scheduled a meeting with Brandt to discuss the E-Auction New Zealand. Development Program, giving Brandt the master list of all In 2005, Snedeker incurred its highest-ever procurement the products needing to be purchased for the next year. Kasey costs in sourcing the products and services needed for cruise instructed Brandt to determine which products would be best ship operations and wanted to combat this trend. To that to purchase through e-auctions and wanted to know how the end Snedeker had been working on changing its buying e-auction process would work. In addition, Kasey wanted practices. In the past, each individual cruise ship made all Brandt to determine the effect that c-auctions would have on its own purchases for the upcoming season. Purchasing was relationships with current suppliers. decentralized, with each ship making purchasing decisions Brandt walked out of Kasey's office overwhelmed. It was based on its needs alone. The company began moving away his first assignment, and he did not know where to begin the from this practice and put into place a centralized purchasing E-Auction Development Program (EDP). department in charge of making purchases for the entire