What is 'reverse auction' in SAP MP-APP-DPE - Dynamic Pricing Engine?

reverse auction - Overview

• Component: MP-APP-DPE

• Component Name: Dynamic Pricing Engine

• Description: Descending auction used in the procurement process which begins with the initiator's highest possible purchase price. Interested bidders create successively decreasing bids according to the rules defining the auction.

reverse auction - Details

• 
  Key Concepts: 
  Reverse auction is a type of procurement process used in SAP’s Dynamic Pricing Engine (MP-APP-DPE) component. It is a process in which suppliers compete to offer the lowest price for goods or services. The buyer can then select the supplier with the lowest bid. 
  
  How to use it: 
  In order to use reverse auction in SAP’s Dynamic Pricing Engine, buyers must first create an auction event and invite suppliers to participate. The buyers can then set parameters such as the duration of the auction, the minimum and maximum bids, and any other criteria they wish to include. Once the auction begins, suppliers can submit their bids and buyers can monitor the progress of the auction. At the end of the auction, the buyer can select the supplier with the lowest bid. 
  
  Tips & Tricks: 
  When setting up a reverse auction in SAP’s Dynamic Pricing Engine, it is important to set clear parameters for the auction. This will ensure that all suppliers are competing on a level playing field and that all bids are fair and reasonable. Additionally, it is important to monitor the progress of the auction closely in order to ensure that all bids are valid and that no supplier is attempting to manipulate the process. 
  
  Related Information: 
  SAP’s Dynamic Pricing Engine also includes other types of procurement processes such as forward