Reverse auctions help organizations successfully realize cost-savings without sacrificing quality and supplier relations. For years, they have been a vital piece of the strategic sourcing suite. Despite this, many enterprises have yet to use reverse auctions to their greatest potential. This paper explores trends and opportunities with reverse auctions and how your enterprise can employ them to deliver a bigger impact to its bottom line.
- Adoption of reverse auctions is rising. They’re most popular among A) large enterprises, both public and private, and B) Millennials and younger GenXers.
- Reverse auctions make a bottom-line impact across the enterprise through their ability to increase the efficiency and efficiency of the sourcing department.
- Enterprises that successfully run reverse auctions prioritize high quality for a good price, rather than automatically awarding to the lowest bidder.
- Successful reverse auctions are run in a buyer’s market to source commodities, simple services, and other items with a low cost of changing.
- Collaboration and transparency — two keys factors that contribute to a successful reverse auction — can only be achieved by running the auction through technology that adequately supports it.