Procurement auction is an official business process used to acquire goods and services from suppliers. It is a method of price discovery and a way to obtain the best value for money. The process involves an auctioneer, who is typically a third-party intermediary, facilitating the bidding process between buyers and sellers. The auctioneer will set a minimum price and the buyers will then bid against each other until the highest bidder is determined. The highest bidder will then win the auction and will be awarded the contract to supply the goods or services. This process is beneficial to both buyers and sellers as it allows buyers to obtain the best value for their money, while sellers can maximize their profits. Additionally, it can be used to reduce costs and increase efficiency in the procurement process.
