online auctions helps to invite the participants for auction. The auctioneer approves the bidder to participate after pre-qualification through RFI (Request for Information).The auctioneer can view the bids placed by all participants during the auction. Any participant can view his position & the L1 price (if permitted by the auctioneer).The pre-qualification process (RFI) is optional.
These are the following benefits for buyers using online auctions:
- Buyers gets his best price (L1).
- Reduce administrative hassles.
- Save time.
- Automation of procurement process.
- Understanding the market price.
- Participation of more sellers creating competition for cost reduction.