56%* of US Organisations Regularly run Reverse Auctions
Data published by CAPS Research shows that 56%* of USD$125M+ US organisations regularly use reverse auctions. On average, each organisation has run 104 reverse auctions with some having exceeded 1,000 price negotiations using the technique.
In Australia and New Zealand, with a few notable exceptions, it is a very different picture. Trade Interchange data shows that less than 5% of ANZ organisations regularly use reverse auctions.
The resources sector has been the exception in Australia with some organisations having run many thousands of reverse auctions since 2000. Coles is also notable for regular use of the technique. In the public sector, WA Department of Treasury and Finance have been piloting the approach since 2007 with other States beginning to strategically adopt reverse auctions in early 2009.
* Reprinted with permission from the publishers, Institute for Supply Management and W. P. Carey School of Business at Arizona State University.
