2-15.14 Key Considerations

Full-Service:

• This model provides a low cost in the short run.
• There are few barriers to entry because the technology is hosted offsite and the service provider assists with all aspects of running the actual auction — from setting up the auction rules and timeline, training bidders (suppliers), monitoring the event, etc.
• With more time on hand, the Postal Service is able to focus its attention on other aspects of the SCM process and award the contract.

Hosted Service:

• Auction logistics are left to the third party.
• The model works for those looking to handle additional logistics, but not wanting the technology within their environment.

Self-Service:

• This model works best if the Postal Service purchases frequently and has the IT infrastructure available to implement and support the application.
• The model provides the lowest TCO over the long term, although the initial investment is much higher than that of the other options.