Increasingly Buyers are realizing that Bidding is not just for commodities but can also be used to derive the best prices out of a closed and tight grouping of competing suppliers. It is not necessary to bring in new suppliers but find out who within a closed group can give the best price. This is typically useful in awarding new businesses which have no incumbent to start with.

Indiaengineering has seen an increasing trend of direct material bidding in closed group with the objective of getting best prices. Ultimately it is the negotiation which happens online while all other parameters are fixed offline. Part criticality and Supplier selection being the key, more time can be spent on that instead of negotiations.