They are even being suggested as a tool for IPO’s.
I was reading the Wall Street Journal yesterday by Francesco Guerrera titled Facebook’s $10B Question which was about their planned IPO. The article went on to discuss the possibility of using a Dutch auction for the IPO versus building a traditional book like most IPO’s. Quite franking I found it an intriguing approach and it has been used before for this purpose. I’m just not sure I would use the Dutch auction approach.
However that is for another discussion. The point of this post is that most companies using reverse and forward auctions are not even aware of the number of auction types available or how to use them for achieving specific purchasing goals. A couple of years ago I posted about the variety of auctions types and their use. I’m not even sure that most e-procurement companies could answer your question if you asked them to define the specific types and how you might use them for different situations.
There are all types of Reverse Auctions. If you check back tomorrow we’ll discuss a Reserve Price Reverse Auction which is one of the most common and how to use it.
If you can’t wait, contact a SafeSourcing Customer Services representative and they’ll be glad to discuss it with you.
We look forward to and appreciate your comments.