Reverse auctions are eAuctions where suppliers submit online bids to compete against each other. Unlike forward auctions, where bids increase as the auction progresses, in reverse auctions, bidding starts with the highest possible price and decreases gradually. The lowest bid wins.
Reverse auctions can be used to drive strategic sourcing innovation according to the client’s set parameters. Although not a substitute for traditional negotiation, a reverse auction is a powerful alternative that retail procurement organizations can use to reduce costs and drive value. Learn more about GEP’s eAuction software solutions.