| CONCEPT |
| A
Forward Auction
is where the seller gets the highest
possible price for the item to be sold
and the buyers outbid each other by
bidding higher than the others. |
| A
Reverse Auction
can be conceptualized as the exact opposite
of a forward auction. In a reverse auction,
the buyer gets the lowest possible price
for the item to be purchased and the
sellers outbid each other by bidding
lesser than the others. |
| ROLES |
| Auctioneer |
Company
who is Conducting or Sponsoring the
Auction ( Buyer ) |
| Auctionee |
Companies
/ Suppliers who participate in the Auction
( Seller ) |
| TYPES |
| Closed
Auction |
A
Type of Reverse Auction where the identity
of participants ( Suppliers ) is not
visible to each other. Only current
lowest bid is visible to suppliers. |
| Open
Auction |
A
Type of Reverse Auction where the identity
of participants is visible to each other. |
| PROCESS |
| The
auctioneer will maintain a list of all
the items (Item master) he buys with
the item profile. Each item shall have
the list of all the suppliers and the
suppliers profile. All the suppliers
must be registered with the supplier
information. |
| Features
& Benefits |
| The
Auctioneer can categorize suppliers
as follows |
| • |
New Suppliers |
• |
Approved Suppliers |
| • |
Preferred Suppliers |
• |
Disqualified Suppliers |
|
| • |
The
auctioneer can invite the suppliers
for reverse auction choosing one
of the above categories of suppliers. |
| • |
The suppliers
will receive e-mail with details
of the reverse auction and the
date and time of auction. The
suppliers can click on the link
in the email and go to the web
application and confirm if they
are participating in the reverse
auction. |
| • |
Invitation
will not be sent to disqualified
suppliers. |
| • |
The suppliers
can obtain the technical specifications
and drawings from the auctioneer
at a specified day before the
auction. All questions on the
technical specifications must
be clarified before a specified
date. The auctioneer can specify
the last date for the technical
clarifications. The technical
clarifications given to any supplier
will be posted on the site for
the benefit of other suppliers,
so that all suppliers will have
the same information with reference
to the specifications. |
| • |
It is very
important that the technical specifications
must be very transparent and clarified
to all the suppliers so that they
will bid for the same items. |
| • |
Pre-alerts
will be sent at specified day
and time before the auction to
the suppliers reminding them about
the Auction. |
| • |
The suppliers
log into the reverse auction web
site on the specified day and
time with their user name and
password and bid for the item. |
| • |
Once the reverse
auction is over, the bid summary
is prepared by the application. |
|
