The effect of business to business online reverse auctions on buyer supplier relationships

In the last tvvo decades there has been a perceptible move towards closer business relationships between buyers and suppliers. More recently, the use of online auctions to gain substantial cost savings has attracted organisations. This research examines the risk to a long-established, buyer-supplier relationship resulting from the buyer's use of online auctions. It was found that while the close relationship had been put at risk. some negative results had been mitigated by the actions of the buying organisation in supporting the supplier to new opportunities. Implications/or other organisations are identified and discussed.