A B2B platform for conducting online negotiations that leverage upon the centralized industry knowledge bank and optimize the purchase objectives of the clients. E-auctions help in eliminating the curse of distance between the buyers and sellers, increase transparency and price discovery.
Auctions are useful market making mechanisms to discover the right price and interested party. Companies often face the challenge to find right buyer or supplier and get the best purchase deal from both sides. Traditional auction houses collect payments, distribute auctioned goods, and act as mediators between buyers and sellers. Manual process has several disadvantages: higher cost, longer lead time consumed in negotiations and limited reach for suppliers or buyers. An e-auction offers a centralised platform that allows listings, creating auction ads, brings in interested parties from anywhere, and, discovers the right price in an open, participatory and completely transparent manner.
Bob eProcure eAuction is a complete web based solution and an innovative negotiation tool, which has been designed to meet the best value proposition for procurement and disposal of goods and services. The advanced sourcing capabilities empower our clients in creating and managing auction sourcing events that go beyond typical online reverse auctions. We provide the tools which helps our clients to employ different strategies to engage the market and generate additional cost savings.
This is a simplified process of sourcing which helps in identifying best sources of supply, better negotiation with suppliers, and global compliance with contracts. We possess an updated vendor database which is used to assist customers in identification of suppliers and fostering a healthy competition.
First, we identify auction items and formulate bidding rules which includes; quantity on offer, maximum quantity allowed per bidder and reserve price. Then we identify, evaluate and pre-qualify the bidders based on rules defined earlier. We communicate the potential bidders to ascertain interest in bidding, we also convey bidding rules and regulations and confirmation for the same. The auction date, participants and duration is finalised. We ensure the smooth operation of the auction event and post event provide a summary of the event, cost savings, comparative chart and other details necessary for decision making.
The eAuction supports both reverse and forward auction:
This is an e auction process where the suppliers compete in real time. Our e-Auction service allows buyers to post RFX’s to the suppliers who in turn will respond in a reverse auction event. The buyer is benefited with supplier selection and is able to attain true market price for goods and services.
Types of auctions:
Our eAuction provides the suppliers to choose a method from the options such as parallel auction, serial, staggered auction. Parallel auction is where the start and end time of auction for multiple items is same. A serial auction is where the items are launched for auction at different times and the time at which it ends is also at a different time. A staggered auction is where the auction for all the items starts at the same time but the ending time of the auction varies.
Our clients have also used our Dutch auction service where a seller offers up an item for bid at a very high price. The initial price is much higher than the item’s value. The price is lowered in increments until a bidder chooses to accept a price which is favourable to him in terms of savings. A comprehensive BOQ is prepared which will help in providing a fair estimate of the costs, and hence result in even pricing of the materials among the suppliers and reduce disparities.
The main strength of our e-Auction is its ability to provide customized/personalized service to its customers, being highly appreciated for its ease of use and ease of implementation. Our customer centric team supports clients in easy execution of auction events.
Clients who have engaged Bob eProcure for e-auctions have benefited from:
- Our ability to handle multiple auction services simultaneously which ensures no crash reports or reduction in the speed. Conducted single National Level Logistics Event value up $100Mn.
- Our complete understanding of the client requirements and provision of customized service which gives them freedom to choose the service.
- An option for the suppliers to add multiple line items for single products individually or as part of a package (Conducted a 260 line items event, with over 80 Online bidders)
- Efficient and capable support team that has handled single event value up to $450Mn.
- Scalable, robust technology platform helps to Increase Savings and Improving Profitability
- Acceleration of Procurement projects: Reduce Requisition to PO time by up to 66%
- Identify and negotiate with Additional Suppliers,
- An open market, suppliers Bid Against Each Other rather than blind quoting
- Save Time, the actual negotiation can take just a Few Minutes rather than weeks
- 80 auction type combinations backed by our Tested Robust Technology
- Complete Audit Trail of negotiations is captured & a Documented report submitted to clients
- Reach large pool of buyers and benefit from fast liquidity.