Published Paper Details:

Electronic reverse auctions (eRA) have become popular in procurement circles. The Indian government's procurement sector started using eRAs for price negotiation in the new century. The CVC has not yet issued eRA event guidelines. Electronic risk assessments are a procurement "best practice" worldwide. They have become so to automate negotiation, not to put pressure on suppliers to lower prices. In order to win the business of providing things or services with well-defined design, quantity, quality, delivery, and terms and conditions, vendors lower their prices during the auction. The auction determines the supplier. Instead of growing, bids in a reverse auction decline. Standard auctions increase bid values. Online reverse auctions occur. Suppliers submit proposals that become cheaper over time using specialized software. The lowest-priced vendor wins the reverse auction. As bids are dropped, supplier rankings and prices may be revealed. However, their identity is kept private and all suppliers get the same information. This article summarizes the benefits and drawbacks of reverse auctions. It was found that reverse auctions should be utilized alongside other procurement methods and protected to ensure their effectiveness and integrity.