| Abstract: | ABSTRACT In the private sector, there is a great deal of interest in the use of forward auctions as a means of increasing recovery rates on surplus or returned items, as part of an overall reverse logistics strategy. Only recently has the public sector realized that it too has the potential to solve its reverse logistics problem and derive revenue at the end of the governmental supply chain. The biggest current experiment in this area involves the Department of Defense. Until recently, American military surplus was sold through physical auctions at 200 facilities worldwide. In mid-2001, the Defense Reutilization and Management Service entered into a unique partnership with Liquidity Services, awarding the firm an exclusive contract to surplus for the armed forces that is not claimed for reuse by other federal, state, and local agencies. Liquidity Services set up a special subsidiary, Government Liquidation, which oversees the storage, display, lotting, and auctioning of military surplus items on its specially-created auction site, www.govliquidation.com. The company's proprietary auction platform provides complete fulfillment solutions, including the handling of payments, shipments, and customer service, and dispute resolutions. This paper is an analysis of this unique partnership and the results produced to date. |
