N.B. This is an additional module to our Sourcing package. Please submit a request via HQ to purchase this module for your site, allowing access to the eAuction feature

 

eAuction

NB: For suppliers to take part in an eAuction, they need to be qualified for the requirement/live for the contract 

  • An eAuction is an online procurement tool where potential suppliers compete in real-time to secure contracts for supplying goods and services. 
  • eAuctions encourage commercial opportunities - it motivates suppliers with competitive pricing strategies to secure larger sales.
  • This is advantageous for the procurement aspect as it provides a non-biased method that ensures access to the most competitive prices available. Simultaneously, it benefits suppliers aiming to secure substantial business volumes.
  • This streamlined eAuction workflow enhances procurement efficiency, allowing fair competition and achieving cost savings for both buyers and suppliers.

 

Unique to eAuctions: 

  • Suppliers have multiple opportunities to bid, whereas a traditional tender only provides one opportunity. eAuctions are like mini-competitions between suppliers.
  • For the purchase of high volume (bulk purchasing), eAuction can influence market prices, leading to significant reductions in the purchase price for buyers.
  • eAuctions are a legally compliant process with complete transparency to all parties. 
  • See the gov website for more information on the criteria of an eAuction https://www.legislation.gov.uk/uksi/2015/102/regulation/35/made

 

Before creating an eAuction

  • In order to create an eAuction, there needs to be a relevant requirement and with qualified suppliers who will participate in the eAuction. 
  • This means that your eAuction should be relevant to a live contract and there needs to be multiple qualified suppliers in order to have the eAuction. This can be all or a selection of the qualified suppliers on the requirement. 
  • Follow this page to create a requirement - https://panaceaapplications.freshdesk.com/a/solutions/articles/15000041232

 

eAuction Process

  • A Key User creates and sets up the eAuction in the Requirement (RFX tab>+RFX>+eAuction). You will need to provide details such as specification, contact details and auction settings.  You will have the option to schedule your eAuction for a time and date. 
  • Once created, you can then: upload relevant documents in the Documents tab; add items for bidding in the Item(s) tab and select participants in the Participants tab to add your suppliers. 
  • Then you click Invite Participants and Schedule Auction. 
  • Suppliers will register their interest and submit Qualification bids within the range for participation eligibility. 
  • Your eAuction will go live for suppliers to participate at the scheduled time in the Live Auction screen.
  • During the live eAuction, participants bid within specified bid ranges. The bids, messages, and ranks are displayed in real-time.
  • Key users have the option to manually start, pause, or end the eAuction. They will also be able to view live auction actions and messages in the Live Auction screen which allows them to communicate with the connected participants.
  • Once the eAuction closes, the Key User confirms winning participants (click Confirm Winner) for each item. 
  • The field will automatically be populated with the leading participant, the Key User can decide to override this by selecting a different participant from the drop-down. Click Save for your selected supplier. 

 

What happens after the eAuction

  • When choosing who to award, you may choose to compare their cost with the quality of the supplier. For example, if the questionnaires have generated scores, you can compare this alongside cost from the competition of the eAuction and therefore select the supplier that you feel has the best quality-price ratio.
  • You would then be able to create a job within the requirement and process the order to the supplier with the details from the eAuction result.


NB. there is a difference between 'Reverse eAuction' and 'Forward eAcution'

  • The difference is that for Reverse eAuctions prices are competitively lowered and for Forward eAuctions the prices are competitively increased between the bidding suppliers.  
  •  An example of Forward eAuction is suppliers bidding to buy paper and magazines for recycling. Potential suppliers would compete with each other by increasing the price they are willing to pay for the paper/magazines to win the business being offered.