Reverse Auction


e-Sourcing is a key part of a global supply chain management strategy. As a result Ability Solutions applies both technology and knowledge of supply markets and purchasing to put the strategy into full effect. Substantial savings and other benefits can be realised through the adoption of best practices used in conjunction with appropriate sourcing strategies.


e-Sourcing, or reverse auction as it is more popularly known, is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction buyers compete to obtain goods or services, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time.


Reverse auction is a strategy used by many purchasing and supply management organizations for spend management, as part of a strategic sourcing and overall supply chain management activities.



In a reverse auction a buyers issues a closed contract to pre-selected approved suppliers via Ability’s BPM toolset. The approved suppliers offer bids via Ability’s online market place, competing to offer the lowest price that meets all of the specifications of the bid. As the auction progresses, the price decreases as sellers compete to offer lower bids than their competitors.


Bidding is performed, by pre-approved suppliers, in real-time via the Internet based online market place resulting in a dynamic, competitive process. This helps achieve rapid downward price pressure that is not normally attainable using traditional static paper-based bidding processes.


Ability Solutions provides solutions for the procurement issues that business management regularly encounter including:
• Understanding and anticipating the changing market place
• Negotiating more effectively to drive better outcomes
• Modernising and improving supply chain
• Organising and refocusing internal procurement teams
• Reducing costs and delivering real savings in time and money
• Encouraging suppliers to offer best value
• Identifying and managing direct/indirect spend
• Reducing tender cycle-time


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