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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, adn provides more focus on
the potential savings. |