Scribd
Upload
23 views11 pages

E Auctions 1706032992

E-auctions can be used as a standalone sourcing process or combined with RFI and RFP processes. The appropriate approach depends on factors like spend level, product specifications, supply market competitiveness, and relationship with suppliers. There are different types of e-auctions like reverse auctions, forward auctions, and multi-attribute auctions. Designing effective e-auctions requires determining what is being auctioned, how much is being auctioned, how winners are selected, and how pricing is determined, along with any necessary safeguards. Managing e-auctions requires pre-auction communication, real-time monitoring, and post-auction evaluation and reporting. Key metrics for a successful e-auction are supplier participation

Uploaded by

Shakeer Pttr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
23 views11 pages

E Auctions 1706032992

E-auctions can be used as a standalone sourcing process or combined with RFI and RFP processes. The appropriate approach depends on factors like spend level, product specifications, supply market competitiveness, and relationship with suppliers. There are different types of e-auctions like reverse auctions, forward auctions, and multi-attribute auctions. Designing effective e-auctions requires determining what is being auctioned, how much is being auctioned, how winners are selected, and how pricing is determined, along with any necessary safeguards. Managing e-auctions requires pre-auction communication, real-time monitoring, and post-auction evaluation and reporting. Key metrics for a successful e-auction are supplier participation

Uploaded by

Shakeer Pttr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

E-Auctions

A GAME CHANGER FOR


COST EFFICENT STRATEGIC
SOURCING
DRIVE EFFICIENCY, SAVE COSTS, AND OPTIMIZE
SOURCING WITH E-AUCTIONS

@Ravi Nishant
SELECTING THE RIGHT SOURCING
APPROACH

Stand alone or combining RFI, RFP & e-Auction?


e-Sourcing can be conducted as a standalone process, following an
RFI, following an RFP, or following both an RFI & RFP. The decision of
which approach to take follows the careful analysis of spend, supply
markets, and specifications, etc

1
@Ravi Nishant
SELECTING THE RIGHT SOURCING
APPROACH

RFP&
Factor RFI RFP E-Auction
E-Auction

Spend Generic/
Building/Discovery Complex Custom
Charateristics Commodity

Product/Service Industry
Lack Clarity/Vague Well Defined Well Defined
Specifications Standard

Value Value and Mostly/Price/


Driver Developing
Dominant Price Volume

Supply Market
Less Very
Unknown Competitive
Competitive Competitive
Competitiveness

Single or
Supply Base Identifying Many Large
few

Supplier
Establishing Strategic Leverage Transactional
Relationship

Switching Cost
Identifying Very High Medium Low
and Risk

2
WHAT ARE E-AUCTIONS?

E-auction is one of the processes of conducting a real time negotiation


to buy or sell assets, natural resources, or other goods through online
competitive bidding.

3
@Ravi Nishant
TYPES OF E-AUCTIONS

4
@Ravi Nishant
WHAT TYPE OF E-AUCTION?
Flowchart

5
@Ravi Nishant
DESIGNING EFFECTIVE E-
AUCTIONS

What is auctioned?
- Technology-specific / neutral - Output-based / investment grants -
Sliding / fixed premiums - Support duration, adjustments,…

How much is auctioned?


- Single-item / multiple items - Volume (capacities / budget)

How should the winners be selected?


- Price-only - Multiple criteria

How should the price be determined?


- Pay-as-bid - Uniform / pay-as-cleared

Should there be safeguards?


-Pre-qualification rules - Penalties (non-compliance/delays)

6
@Ravi Nishant
MANAGING AND EXECUTING E-
AUCTIONS

Pre-Auction Communication with Suppliers (Clarifying questions and


addressing concerns)
Real-Time Auction Monitoring and Support (Ensuring fair play and
technical assistance)
Post-Auction Evaluation and Reporting (Analyzing results, identifying
trends, and improving future auctions)

7
@Ravi Nishant
KEY METRICS FOR E-AUCTION
SUCCESS

Supplier Participation and Competition (Number of bidders, bid variance)


Cost Savings Achieved (Compare pre- and post-auction prices)
No of unique items listed
Efficiency and Time Savings (Compare to traditional sourcing methods)
Conversion Rate from Browsing to Bidding

8
@Ravi Nishant
KEY TAKE AWAYS

Defining Sourcing Objectives (Cost reduction, quality


improvement, risk mitigation)
What is the approximate size of the bid in this category? The
amount that the bidders will gain owing to this category might
reap their interest.
Selecting the Right Auction Type (Matching objectives to type of
auction)
The buyers need to identify the total cost of ownership right at
the start for better strategies.
Identifying Suitable Suppliers (Ensuring competition and qualified
bids)

9
@Ravi Nishant
Don’t forget
to save this
post
Like,Comment,Share,Ask Questions,Subscribe

Ravi Nishant

You might also like