All they really need to do is make the loot tradeable for a specific amount of time. That way if I win a piece I don't need, but Fred really does, I can opt to give it to him. Or, at the very least, a prompt to pass on an item that I've won if I don't need it. The loot would then get assigned to the next person.
It's nice to have in place for a PUG, so that you don't have people just needing on everything.