Forward Auction

A Forward Auction is the traditional auction format where multiple buyers bid against each other for products or services offered by a single seller, with prices increasing as bidding progresses. In procurement contexts, organizations sometimes use forward auctions to dispose of surplus assets, equipment, or inventory.

Typical uses of forward auctions in business include:

• Selling obsolete equipment or excess inventory
• Liquidating assets during business restructuring
• Disposing of returned or refurbished items
• Monetizing by-products or production residuals
• Selling time-sensitive capacity or perishable inventory

Digital procurement platforms may include forward auction capabilities as part of broader asset disposition or inventory management modules, helping organizations maximize recovery value while ensuring transparent and compliant sales processes for surplus materials.