The Research on Reverse Auction and Its Application in the Enterprise Procurement

Reverse auction is getting more and more popular in enterprises for its benefits in terms of reduced manual involvement, lower transaction costs, faster completion of the tender cycle and being a more efficient method for decision making in enterprise procurement. This article reviews the use of reverse auctions in enterprise procurement, structures these auctions process, highlights the three implications on supplier relationship management and finally gives the suggestion on ensuring appropriate products to be procured by reverse auction, designing the correct and proper reverse auction format and clearly communicating and professional training to the potential suppliers.