Executive Briefings

Some Suppliers Not Keen on Reverse Auctions

Suppliers are attempting to undermine procurement's use of reverse auctions, research has found. Methods used to "disrupt" the auctions include: refusing to participate, submitting bids outside the auction process or offering their lowest price at the start of the auction, limiting its effectiveness.
A project carried out by research group Huthwaite International found suppliers believe auctions commoditize offers, focus only on price and destroy relationships.
Source: Supply Management, http://www.supplymanagement.com

Suppliers are attempting to undermine procurement's use of reverse auctions, research has found. Methods used to "disrupt" the auctions include: refusing to participate, submitting bids outside the auction process or offering their lowest price at the start of the auction, limiting its effectiveness.
A project carried out by research group Huthwaite International found suppliers believe auctions commoditize offers, focus only on price and destroy relationships.
Source: Supply Management, http://www.supplymanagement.com