WareMatch Glossary
Reverse Auction
A bidding process where suppliers compete to offer the lowest price for goods or services.
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Updated 2025-10-01
Definition
Reverse auctions help buyers reduce procurement costs by inviting multiple suppliers to underbid each other in real-time.
Overview
Overview
Commonly used in logistics and supply chain procurement to select carriers, vendors, or service providers cost-effectively.
Process
- Buyer defines requirements
- Suppliers submit decreasing bids
- Lowest compliant bid wins
Example
A company conducts a reverse auction for freight services, where carriers bid lower rates to win the contract.
Tags
#Reverse Auction#Procurement#Logistics#Cost Reduction#Bidding
Related Terms
Freight Bidding
Carrier Assignment
Vendor Scorecard
