Reverse Auctions—Who, When & What

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By: Tara Ann Neville

Perfect attended The Institute for Public Procurement (NIGP) 2016 Forum in National Harbor, Maryland and came away with 3 key lessons to share. In today’s blog, and the next two blogs, we discuss these lessons and offer further reading on the topics.

Lesson 1: Trending today…a demand for Reverse Auctions and Events.

Over the past few years, there’s been a steady demand for and an increase in the use of reverse auctions. Reverse auctions swap the roles of a traditional buyer and seller. Sellers are competing against each other to gain the business from the buyer by decreasing their bid. The advantages of reverse auctions and, in effect, why they have become popular is that the online activity reduces paperwork while increasing efficiency. Often, traditional events take months, whereas Reverse Auctions usually last only a few weeks. Be careful though, not all items should be offered in a reverse auction—the best to consider are raw materials, supplies and clearly-defined services.

Businesses have been engaging in more and more Reverse Auctions over the past several years. Gartner Studios discovered the benefits of Reverse Auctions in 2007 and continue to see savings today. Check out the article by Max Chafkin How to Compete in a Reverse Auction.

With the Perfect Reverse Auction solution, you’re in the driver’s seat! Join in on the discussion on our social media channels LinkedIn & Twitter and follow this 3-part series on our Perfect Blog.