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Home » Some Suppliers Not Keen on Reverse Auctions

Some Suppliers Not Keen on Reverse Auctions

April 16, 2008
Supply Management

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

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