Reversed Auction

How does it work?

Traditional process

DSM collects the required data for an order and drawes up a long list of up to 5 or 6 potential suppliers
DSM sends all information about the order to the selected suppliers from the long list (1 by 1)
DSM collects all received data from the selected suppliers featured on the long list (takes 3 to 6 weeks)
DSM compares and evaluates the collected data, and creates a shortlist of 2 or 3 suppliers
DSM negotiates with each supplier on a one-to-one basis (2 or 3 suppliers)
DSM awards the contract to the most competitive supplier

Reversed Auction process

DSM collects the data of all potential suppliers online from the auction platform (takes 1 to 2 weeks)
DSM posts a detailed description of the required materials on the auction platform
Each supplier sends detailed information about his proposal via the auction platform
Next step is the online bidding in limited time by all selected suppliers (takes from 30 minutes up to several hours)
DSM awards the contract to the most competitive supplier