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Reverse Auctions:
1.What is a Reverse Auction?
This is an Auction in which the suppliers bid for a
contract online through the mechanism of successive reducing bids.This helps in
achieving the best prices, in a transparent manner.
2.Can a Supplier see the identity
and identity of the other bidders?
Identity of the other bidders is not revealed, however
the bids can be revealed if the Buyer wishes so.
3.What products or
services would be suitable for Reverse auction?
Purchases which are of sufficient
value to attract competition, with a requirement that can be accurately specified
and for which there is a competitive market are suitable for a Reverse auction.
For e.g Raw Materials, Packaging Material, Bulk procurement of Steel and Cement
for projects etc.
4.At what stage during
my procurement process should I prepare for a reverse auction?
When the requirement is freezed,
RFQ are sent to the approved vendors, at this time Reverse Auction process can be
initiated.
5.What is the cost
of running a Reverse Auction?
At smartsourcingonline.com, reverse auctions are very
cost effective, and they give you excellent value for money.
6.Are Reverse Auctions
only for reducing prices?
No. reverse auctions help you
achieve the right prices in a transparent manner in the shortest possible time.
At the same time reverse auctions never leads towards unreasonable prices.
7.Where I can learn
more about reverse auctions?
We at MMCG conduct training programs
on Reverse Auctions for Purchase Managers.
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