eProcurement

Coop Purchasing

Contract Management

RFP Evaluator

Requisitioning

Reverse Auctions

Pricing

Solutions

Getting Started

A reverse auction is a bidding process in which multiple suppliers bid against one another electronically. In this process the suppliers are allowed to see each other's prices. They are assigned a randomly generated number to ensure that the suppliers remain anonymous to one another. The allotted time period for a reverse auction does vary; it could last for one hour or up to two weeks. Prices are driven down as suppliers try to outbid one another.

Benefits Of A Reverse Auction:

• Lower prices—price savings can be anywhere from 5% – 70%.
• Level playing field for suppliers—suppliers adjust their prices based off their competitors' prices, thus ensuring equal chance of winning for all suppliers. This also helps maintain a fair profit margin.
• Increased competition—the internet allows suppliers in different geographical areas to participate in the auction.