Procurement Methodologies Pulse Blog Online reverse auctions have been around for a few decades, especially in the private sector and federal government. Many states have statutory or regulatory authority to conduct reverse auctions. However, many public buyers don’t use them on a regular basis. Moreover, some states that conducted reverse auctions haven’t always achieved the expected savings or outcome.
NASPO’s newly-released paper “Reverse Auctions: A Roadmap for Success” is based on information gathered from a few states that achieved notable results with their reverse auctions. We’ve included a roadmap for success, examples of goods and services suitable for online reverse auctions and tips from CPOs for both suppliers and buyers.
Well-run reverse auctions should produce the expected savings and outcomes if careful planning and market research was done prior to conducting the online event. Make sure you select this method for the appropriate category of goods and services and follow the five steps discussed in this NASPO paper as a Roadmap for Success.
A question that many people are often asking is: Can a reverse auction be a win-win? What can public buyers do to maximize its benefits? The NASPO publication tries to answer these questions. Download your copy of the NASPO publication today to learn about what goods and services work well with reverse auctions and some possible exceptions where you should not use this sourcing method.