Reverse auctions have left many distributors with a bad taste in their mouths. But new and cheaper technology is addressing some of the issues that turned off many distributors from this e-sourcing tool. Some buyers have learned from their mistakes and are spending more time to find better qualified suppliers in the pre-auction phase to avoid problems on the back end.
Could reverse auctions be coming into their own? Some industry watchers think so.
While many distributors have learned through bad experiences to avoid them, reverse auctions could be transitioning onto more neutral ground as technology advances and becomes more affordable, and the unsustainability of price-focused auctions is exposed.