Reverse auction

A reverse auction (also called a "procurement auction," "e-auction," "sourcing event," "e-sourcing" or "eRA") is a tool used in industrial business-to-business procurement. It is a type of auction in which the role of the buyer and seller are reversed, with the primary objective to drive purchase prices downward. In an ordinary auction (also known as a "forward auction"), buyers compete to obtain a good or service. In a reverse auction, sellers compete to obtain business.