CEO To Purchasing Agent: "Other
Companies Are Saving Billions of Dollars
By Conducting Internet Reverse
Auctions…Why Aren't We?"
PurchTips - Edition # 9 November 5, 2002
By Charles Dominick
What Is An Internet Reverse Auction?
Most of us are familiar with a "traditional" auction - where one individual, group, or selling organization has a product or service to sell and a host of buyers compete with each other to buy that product or service. The competitive forces at work ensure that the seller gets the highest price in the market for the offered product or service.
A reverse auction is where one buying organization has a requirement to buy a product or service and a host of sellers compete for the opportunity to sell that product or service to the buying organization. The competitive forces at work ensure that the buyer gets the lowest price in the market for the required product or service.
An Internet Reverse Auction (also called an online reverse auction) is a reverse auction that is conducted live, in real time, over the Internet, thereby permitting sellers in different locations to simultaneously attempt to outbid each other.
Internet Reverse Auctions have generated billions of dollars in savings and have become embraced by modern purchasing professionals across many industries.
Spotlight On Professional Development Opportunities
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You will learn how to protect your organization from the effects of suppliers' failure to perform, plus…
- How to choose the most appropriate agreement form
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- How to write key technical provisions
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For more information on this 15-Minute Tutorial and other online classes for purchasing professionals, visit:
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