A buyer being important to the supplier implies that the potential supplier values the relationship with the buyer and thus will participate in reverse auctions. The Center for Advanced Purchasing Studies research has shown that there is a 2 to 1 ratio of buyers who feel that reverse auctions have improved their supplier relationships. Relationships have improved based on an increase in trust, greater access to supplier data, and greater amount of business for suppliers.
Suppliers generally prefer to maintain a close relationship with large companies well known in the market, rather than with smaller companies. As a result, suppliers tend to value the relationship with a smaller company less and may not participate in reverse auctions hosted by smaller companies.
