A JIT system is costly to set up and cannot be effectively implemented without
a continuing and close working relationship between buyer and seller. This may explain why a growing proportion of the purchases of component materials and parts, particularly in situations where the components are standardized and the buyer is able to specify all requirements in detail, are being made through electronic buyer auctions such as Free Markets, Inc.27 (www.freemarkets.com). Competitive bidding by suppliers can provide some of the cost saving benefits of JIT systems without the time and effort necessary to build close cooperation.