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Reverse Auction Strategies




RA Strategies

Conditions in which they are used

1 Sealed Bid In this case one estimated price is taken from all the participating parties. Sealed bid is normally followed by one or more of the other RA strategy.
2 Reverse auction The standard RA is generally suited for those items where it possible to fix a fair estimate of the prevailing market price.
3 Rank based reverse auction

hisThis is applied when the Sealed bid value quoted by bidders have significant difference between them.

    The rank based bidding discovers the fair market price and helps to counter cartelization.

4 Price match         

ThiThis  Auction strategy is used when the client want to split order quantity in more than one supplier.

      All interested parties have to match L1 rate.


What is Reverse Auction in Purchase ?                                Benefits of Reverse Auction