What is Bidding

E-reverse auction is an online, real-time dynamic auction between a buyer organization and a group of pre-qualified suppliers. There occurs a competitive environment, which can lead to great price reductions for the items auctioned. In addition, cycle-time savings for buyers and suppliers, growing markets, accessing to a larger pool of suppliers can be the other advantages. Using e-reverse auction also includes risks such as damaging supplier relationships and increasing the total cost of procurement. This leads to a resistance from internal users and suppliers in the use of e-reverse auction. In the chapter, a research model including risks and benefits of using e-reverse auction is proposed in order to understand the important factors in the decision to use e-reverse auction.