Reversing Course on a Reverse E-Auction (B)

Case Solution

Kym Lew Nelson, James K. Sebenius, Alex Green
Harvard Business School ()

LSP, the world’s leading consumer goods company, made huge savings on a test run of a new competitive bidding tool for its procurement organization, known as reverse action. But when Jen Baldwin is asked by her vendors to get the same savings on a product her own department uses, things get a lot more complex, showing the pros and cons of using the tool to lower price, maintain relationships with providers and make profit. savings for the company.

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