Auction Creation Guidelines

  1. Advance Auction Creation
    • Create the auction at least one day before the scheduled start time.
    • This allows suppliers ample time to review details, prepare bids, and raise queries, while providing the procurement team time to finalize necessary details.
  2. Strategic Bid Improvement Value
    • Set the bid improvement value (minimum increment/decrement) carefully to encourage competitive bidding.
      • Too Small: May discourage active participation due to limited impact.
      • Too Large: Could deter suppliers from improving their bids.
    • Consider market dynamics and product specifics when determining the optimal value.
  3. Enable Pre-Bids Judiciously
    • Use the pre-bid feature selectively to allow suppliers to submit initial bids before the auction starts.
    • Assess suppliers’ familiarity with pre-bidding, and provide clear guidance to minimize confusion.
  4. Include All Suppliers During Setup
    • Add all participating suppliers during the auction creation process, as the structure cannot be modified later.
    • Verify supplier details and access permissions to avoid last-minute issues.
  5. Supplier Training
    • Share a brief training guide or conduct a short session to help suppliers understand the auction process, improving participation and bid quality.
  6. Notifications and Reminders
    • Notify suppliers immediately upon creating the auction.
    • Send timely reminders closer to the start time to ensure readiness.
  7. Review Auction Details
    • Double-check all auction parameters, including start/end times, bid increment values, and the supplier list, to ensure accuracy.

 

Auction Monitoring Guidelines

  1. Log In Early to Verify Supplier Status
    • Log in at least one hour before the auction to confirm supplier readiness:
      • Accepted: Ensure suppliers are prepared and can access the portal.
      • Pending: Follow up to confirm participation and resolve access issues.
      • Rejected: Consider inviting alternate suppliers or adjusting the setup if necessary.
  2. Ensure Supplier Alignment
    • Confirm suppliers fully understand the auction process:
      • Logging in and participating.
      • Placing bids and interpreting updates.
      • Adhering to specific rules or conditions.
    • Address last-minute queries to ensure clarity.
  3. Reinforce Bid Improvement Logic
    • Explain the bid improvement condition (minimum bid change multiples) in advance:
      • What It Means: Suppliers must improve bids by at least the minimum decrement or its multiples.
      • Example: If the decrement is $500, bids must reduce by $500, $1,000, $1,500, etc.
    • Provide concise reminders just before the auction begins:
      • E.g., "Bids must improve by the specified minimum decrement or its multiples."
  4. Monitor in Real-Time
    • Observe supplier activity throughout the auction.
    • If a supplier remains inactive for an extended period, consider a follow-up via communication or call to encourage participation.

 

Auction Analysis Guidelines

  1. Select the Most Relevant Auction Scenario
    • Analyze auction results to identify the best-fit scenario for your procurement strategy.
  2. Download Reports for Insights
    • Use the reporting feature to download comprehensive auction data for detailed analysis and clarification.
  3. Choose the Best Supplier
    • Select the supplier offering the best value while meeting organizational requirements, based on the analysis.