The Fading Reverse Auction —Morgan

Heather Broad, purchasing manager at Express Scripts, participates in them often. “We use reverse auctions regularly,” she says. “We find that they’re very useful when your commodity is well-defined, when there are six or more pre-qualified bidders, and when all bidders understand that the bid will be awarded at the end of the reverse auction (so they must give their best and final price at that time).”