Reverse auctions

A strategy used in sourcing when sellers compete with one another to win the business of the buyer. Prices trend down as the bidding goes on

Some clients are starting to use "reverse auction" tools 

• Pursuit: "The billable hour is dead. AFA’s bring a new level of price predictability and cost optimization to the world’s most advanced legal departments. Eliminate manual work and get out of spreadsheet hell. REDUCE SPEND: PERSUIT clients see an average savings of $129k per matter*
• JusticeBid: "An e-auction suite for live, dynamic bidding ( and Request for Information / Proposal (RFI/P) tool for quick and easy vendor discovery - achieve sustainable cost reductions and increase savings; greater diversity on your matters"
• SAP Ariba Sourcing: "an auction is known as a reverse auction. It’s an online event in which suppliers respond to RFIs and RFPs in real time with bids to provide specific goods or services. When you participate in a reverse auction, sourcing professionals evaluate your bidding documents and provide feedback on how your bid compares with other participants."
• aPriori: "A reverse auction is a strategy used in sourcing between buyers and suppliers in which sellers compete with one another to win the business of the buyer. It is called a reverse auction because prices trend down as the bidding goes on, rather than up, as they would in a typical auction. Suppliers are bidding at a lower and lower price to win the business."
• SCM STAR - Siemens strategic procurement platform