In 2006 SAP has issued a white paper about reverse auction best practices. You can find it now on its knowledge hub. Here you go. You will learn the essential, i.e. when to use RFx and reverse auctions, how to sell auctions to internal stakeholders, how to get supplier buy-in, how to choose the right auction settings and to run an auction.
reverse auctions for many years. However, the use of auctions has a long way to go to reach full potential. In fact, many
organizations have yet to explore the benefits of auctions. Most others have yet to apply auctions to the full range of goods and services for which auctions can deliver value.
Reverse auctions are hosted by a single buyer and feature two or more suppliers competing for business. Such auctions are
commonly used by organizations as a tactical way to achieve sourcing objectives. We have all heard the objections: Auctions don’t fit the category we’re sourcing.” “Our suppliers would never participate.” “Our company does not do business this way.” Every objection stems from valid concerns. However, if your organization’s goal is to conduct fair and open ompetition among your supply base, reverse auctions can be a very effective tool in bringing transparency to the sourcing process.
This white paper provides information that will assist your organization in driving the use of auctions and – most important
– delivering bottom-line results for your procurement organization.