Reverse Auction Software: A Must Have in Procurement of Items

2007-03-08 10:33:40

( Business )



Reverse auction, as the term says, is an auction performed in a reverse manner. Unlike the traditional auction where the buyer bids the highest price for a particular item, in a reverse auction, it is the seller that offers their lowest price in order to be awarded the purchase. Reverse auction software is also known as bid management software, online auction software and is similar to a construction bidding software.

The process of reverse auctions is commonly used in the field of procurement where it has been an effective measure in cutting company expenditure.

The purchase of reverse auction software is recommended in order to operate a reverse auction. The reverse auction software allows you to electronically create requests for pricing or quotation and providing certain criteria that you have for the item. This eliminates the need for manually filling up purchase request forms and thus saves time.

The reverse auction software also eliminates the process of having to contact each vendor to request for a price or quotation. The online software automatically sends out a pricing request through email or fax. Once a former request has been made for a particular product, the online software stores it in the program so that it can be used again in future requests for pricing

Aside from bids made by vendors via Internet using real time bidding, you can also request them to submit their company profile in order to help you in the procurement process. Not all purchases are made based on the lowest price. Some companies also base the awarding of the bid on the services that the vendor offers, the terms of payment and delivery time.

Using online auction software will also make the vendors aware that there is stiff competition in getting their products or services sold, and this will drive them to lower their prices rapidly in order to produce sales for their company.


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