Reverse e-auctions: exploring reasons for use and buyer's satisfaction

Abstract

Internet technology has changed many supply chain processes. This paper explores how buyers are using one controversial internet-based supply chain tool, reverse e-auctions. The reasons for use and satisfaction with reverse e-auctions are explored based on the experiences of 47 purchasing organisations. The results of this study suggest that attaining lower purchase prices is more important than improving the purchasing process, meeting strategic objectives, and finding new suppliers. Overall, e-auction adopters in this study are more satisfied with the purchase price, than supplier relationships, and the e-auction process itself.