1. How savings are generated?

It is always said that reverse auction can save procurement cost. What is the reason?

From the above illustration, we can see that with conventional negotiation method, the buyer may usually make up to 3 rounds of negotiation. There is still a certain gap between the negotiated price and the reasonable market price. If it is a reverse auction, the bidder will see the feedback which is ranking and/or best price. When the bidder finds that their ranking is not the first or the current best offer, they will continue to reduce prices to fight for business if they can afford the price reduction.

Customer Success Portal

 TACTICA eSourcing Platform
<< Home