Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
Reverse Auction
A bidding process where suppliers compete to offer the lowest price for goods or services.
Definition
Reverse auctions help buyers reduce procurement costs by inviting multiple suppliers to underbid each other in real-time.
Overview
Commonly used in logistics and supply chain procurement to select carriers, vendors, or service providers cost-effectively.
Role
A bidding process where suppliers compete to offer the lowest price for goods or services.
Focus
Commonly used in logistics and supply chain procurement to select carriers, vendors, or service providers cost-effectively.
Example
A company conducts a reverse auction for freight services, where carriers bid lower rates to win the contract.
FAQs
Q: Can you give an example of Reverse Auction?
A: A company conducts a reverse auction for freight services, where carriers bid lower rates to win the contract.