In the rapidly evolving landscape of procurement, strategic sourcing is pivotal to achieving organizational goals. After exploring e-Procurement, Spend Analysis, Supplier Management, and Contract Management in our series, we now shift our lens towards the fascinating world of e-Auctions. Unpacking the mantra of ORA et labora in sourcing, today we delve into the indispensable tools that drive efficient sourcing, Optimization, RFX, and Auction, this time focusing on e-Auctions.
The main substitute for RFX is e-Auction. Rather than requesting quotes to be evaluated through an extensive and often nuanced procedure, you seek immediate quotes via an online platform. Here, suppliers have the flexibility to modify their bids until they decide to withdraw.
Basic Features of e‑Auction Platforms:
- Lot Configuration: While it might seem rudimentary, having configurable lots or items is crucial for tailoring auctions according to category-specific requirements.
- Saved Item List: This facilitates the rapid set-up of auctions by allowing senior buyers to utilize predefined items or item groups, minimizing repetitive tasks.
- Multiple Auction Types: A modern platform needs to cater to a diverse range of auction formats, including standard, reverse, sealed-bid, and more.
- Supplier-Specific Views: Suppliers should be presented with a tailored view, seeing only the relevant information and lots they are bidding on.
- Substitution Item Support: This feature enables suppliers to offer alternative products that might be of higher quality, lower cost, or more readily available.
- Proxy Support: Recognizing the unpredictability of the internet, platforms should have provisions for a lead bidder and multiple proxies or substitutes to ensure seamless bidding if there is an issue with the lead bidder's connection.
- Messaging: Effective communication is paramount. Real-time chats for instant queries and group-based messaging capabilities are essential.
Advanced e‑Auctions:
- Formula-Based Pricing: Modern platforms should accommodate formula-based pricing, facilitating real-time adjustments like bid reductions or commodity-related price changes.
- Optional Formatting: To ensure clarity for suppliers, platforms should allow comprehensive customization, encompassing table formats, color schemes, and even graphical views.
- Real-Time Graphical Views: With increasing data complexity, graphical representations can simplify the bidding landscape, enabling suppliers to make informed decisions quickly.
- Real-Time Supplier Connectivity Monitoring: Given potential internet disruptions, the system should constantly monitor bidder connectivity, allowing for swift adjustments in case of issues.
- Constrains: Modern solutions should allow for defining bidding constraints like minimum bid differences, target prices, and item-specific conditions.
While the world of e‑Auctions is vast and ever-evolving, these features serve as a foundational checklist for any modern e‑Auction solution. As the industry progresses, platforms will inevitably introduce novel capabilities. However, ensuring the basics are in place is the first step towards a comprehensive and effective e‑Auction strategy.
Learn more about the ORA et labora principles at work in Sourcing: