Articles

How Reverse Auctions Work

Reverse auctions have become a popular and beneficial trend in procurement. Essentially, they work by having the seller of the service or goods do the bidding while they buyer gets to select the winner. Unlike traditional auctions, the winner is not chosen based solely on the amount of their bid, so the highest or the lowest

Reverse Auctions Overview & When to Use

Reverse auctions as a tool have been around since the late 1990's. They have been used in the Fortune 2000 to obtain more favorable pricing, to reduce cycle times, and to lower overall supply costs.

Reverse Auctions - Glossary of Terms

Auction: A competitive bidding event with a start time and and end time where bidders place bids to discover market pricing.

The Internet has brought a number of changes to the field of procurement. Companies can now place orders with vendors through virtual catalogs in real-time, for example. However, none of these changes seems capable of saving companies as much money as reverse auctions.

A Procurement Trend to Save on Costs

Companies today need to shave expenses wherever possible and that includes the purchase of goods and services needed to keep their businesses running smoothly and efficiently. In the old days, the process of finding vendors was extremely limited and was very time-consuming.

Introduction

Today, buyers for federal agencies, state and local governments, and municipalities are under increasing pressure to do more with fewer staff and resources. This often involves fulfilling their missions and purchasing required goods and services using the most effective and efficient manner possible.

Introduction to the Competitive Bidding Proces

The term reverse auction has been used a great deal in procurement circles and has been touted as the biggest and best way for companies to reduce purchasing expenses. Yet, many companies are still reluctant to get involved in the hoopla because they do not understand exactly how the process works nor do they understand all of the potential benefits.

Introduction to Developing Supplier Strategies

With reverse auctions becoming so popular, it is highly unlikely that any large supplier of commodities can continue to do business successfully without participating in one. Generally, participation is either met with excitement because of the potential for new work or with apprehension because of the possibility of losing existing work.

Full Service Reverse Auctions

Overview

Reverse auctions are a powerful tool for purchasing departments