The Dutch Reverse Auction was originally developed successfully in the Netherlands for tulip sales and is still used today. The original idea of selling the tulips as quickly as possible for the best price was also gradually adopted for shopping. The Dutch Reverse Auction is used today for purchasing in areas with low competition.
It starts at a very, sometimes unrealistic, low price. The supplier is given a fixed time interval (for example 30 seconds) in which they must decide on the acceptance of the price. If none of the invited suppliers accepts this price, the price is automatically increased by one price step. Suppliers are then faced with the same decision again. This cycle continues until the first supplier accepts the price. Then the auction is over.
Since suppliers have no information about their competitors, they are under pressure. There is no further opportunity for improvement.
Looking for all-in-one auction solution to simplify and optimize your procurement? Carry out all your auctions online with Esupplier.in.