Reverse Auctions
What is a Reverse Auction?

A Reverse Auction is an event which is conducted on-line with pre-qualified suppliers being invited to compete on predetermined and published criteria. In many ways, a reverse auction is similar to a time restricted Request for Proposal.

The reverse auction offers a unique objectivity and transparency for buyers and suppliers. The participating suppliers can either see the best price quoted so far or their own rank compared to the rest of the competitors and react accordingly by lowering their own bids.

There are many advantages to reverse Auctions. Reverse Auctions allow preferred bidders to be contained within a single database, while allowing easy comparison of current bids from competing vendors, and maintaining a controlled secured environment.

Reverse Auctions are the answer for saving time and money. They reduce the amount of paperwork; while still leaving you an audit trail for documentation. Reverse Auctions cane be found to force lower pricing and more favorable conditions, as well as decrease the number of possible vendors as a variety of items can be joined or replaced.

Reverse Auctions allow you to expand the marketplace, by uniting a client with multiple competing bidders. A Reverse Auction allows you to minimize the time spend on traditional bidding, and provides more focus on the potential savings.

There are a large variety of choices in the marketplace for Reverse Auction Tools. Basic tools can set a business back anywhere from a few hundred dollars to a few thousand dollars per month for licensing costs. However, a free alternative exists in the marketplace. is the web's first completely free e-Sourcing system that allows buyers to create and manage RFP and Reverse Auction Events and allows suppliers to participate for free.
Read more about here:, the FREE Reverse Auction System

eSourcing Tools can go way beyond simple RFP and Reverse Auction event management. Specialized pay tools in the marketplace offer integration into ERP systems and can provide features such as optimization, which allows buyers to quickly analyze the best supply chain alternatives for their business. Contact Us for help writing an RFP and selecting the best Reverse Auction or eSourcing System for your organization.

Procurement Services Provider HomePage

home | partners | about us | contact

Spend Management Articles | SiteMap Copyright 2010