1.

Role of Contract Structure: The study emphasizes the importance of contract

structures in governing buyer-supplier relationships after reverse auctions. Clear
explanation of rules before the auction and independent decision-making on
contract form after the auction contribute to successful outcomes.
2. Importance of Price in Auction Selection: While price is crucial in auction
selection, it shouldn't be the sole determinant. A relational approach is
recommended, especially for strategically important relationships. Supplier
cooperation is influenced by expectations of continued interaction with the
buying firm.
3. Tradeoff between Price and Relationships: The study highlights a tradeoff
between lower purchase prices and the opportunity cost of not choosing
suppliers that can provide non-price-related assistance. Firms must assess this
tradeoff when designing the auction structure.
4. Time Savings and Relationship Building: Reverse auctions provide time savings,
but this may be offset by the increased time required to build and maintain
relationships. Firms must carefully select suppliers for relational governance,
considering the time-consuming nature of this approach.
5. Conclusion: The study demonstrates that relational governance mechanisms can
coexist with reverse auctions, leading to increased supplier cooperation.
However, this increased cooperation may come at the cost of lower purchase
price savings and time savings. The ultimate decision depends on the buyer's
strategic priorities and goals.

Overall, the case study emphasizes the nuanced relationship between reverse auctions,
price considerations, and buyer-supplier relationships, suggesting that a balanced
approach is essential for maximizing benefits while maintaining healthy relationships
with suppliers.
6.