Capital Equipment by its nature requires a thorough Technical and Functional capability study and assessment at the time of short- listing process. The purchase decision is typically between a limited three or four qualified suppliers. Negotiations between these are largely manual leading to lower negotiation efficiencies, especially if and the product is largely interchangeable. Reverse auctions have proved that the prices are typically realized 20-30% lower with Dynamic negotiations.

Typically high end suppliers tend to charge a huge premium on name which can be reduced through a transparent bidding process.