What are Current Supplier Cost and Target Price?
The Current Supplier Cost (CSC) and Target Price can be used for many different purposes. For instance, the CSC might be the most recent historical purchase price paid for the product or service being sought, or it could be an average of quotes obtained for the product or service. It may be used to gage the savings achieved through the reverse auction, or it may be used as a starting point for the bids received through the reverse auction. The Target Price may be the goal price the Buyer wishes to achieve through the reverse auction. Several optional names for these components are available, e.g., instead of “CSC”, “Market Price” or “Historical Purchase Price” may be used to represent this figure. Target Price may be replaced with “Desired Price” or “Goal Price”. Additionally, the Buyer may choose to veil these prices from the bidders participating in the reverse auction.
