Systematic literature review on electronic reverse auction: issues and research discussion

Abstract

Electronic reverse auctions (eRAs) are receiving extensive attention as an effective stratagem to negotiate prices with suppliers and service providers for the purchase of goods and services. The aim of this paper is to explore the literature to investigate the evolution of eRA over the past few years. A review of literature on 'eRA' from 2001 to 2015 has been undertaken. The subject has been discussed at length from the viewpoint of 'supplier participation', 'spend category' and 'auction size'. The present study consolidates various benefits of eRAs such as reduced time and prices for buyers, increased competition among sellers, discovery of real time market price and improved efficiency of the purchasing process. It also discusses the limiting factors such as costs of switching suppliers, challenges to buyer-supplier relationship and resistance on the part of buyers to be a part of the entire process.