What is a reverse (procurement, purchasing) e-auction?
The reverse auction is a tool for improving the effectiveness of the sourcing process and facilitates access to new suppliers. In a reverse auction, the sellers compete to obtain business from the buyer and prices will typically decrease as the sellers underbid each other.Bidding performed in real-time via the Internet results in a dynamic, competitive process. This helps achieve rapid downward price pressure that is not normally attainable using traditional static paper-based bidding processes.
Expected average price reduction is 5–20 percent.
You can use this application for organizing reverse auction
I will set up your auction exactly to your liking, then I will assist during the auction. You will just watch.
The users can use any web browser, therefore the application is available from everywhere without any installation. The system has two sides – the side of one buyer a the side of more sellers:
- The sellers offer their bids during the auction. They can see the comparison of their bid with the others immediatelly – if they are or they are not currently winning the whole auction and/or individual items (in case of more items in auction). They can optionally see their standing and/or the value of the current best bid.
screens of two sellers
- The buyer sees bids of all sellers with best values highlighted - both individual items and total value. Based on comparison of these values, the buyer chooses the winning supplier at the end of an auction. The final decision is up to the buyer - the auction results are just background. The buyer can also view the history of bids in auction.
screen of a buyer
Key properties of the application
- maximal flexibility:
- any number of sellers, items, parameters - besides the price e.g invoice due date, bonus
- any limits for bids i.e minimum difference of a bid, impossibility of offering the same value as currently winning one to prevent of indecisive results
- optional automatic extension of auction due to sellers activity
- calculation of the total bid's value according to the arbitrary formula from the prices of individual items
- competing either for the total cost (all the items will be bought from one seller - winner of the whole auction) or for individual items (items can be bought from different sellers - winners of individual items)
- sellers can optionally put their bids before the auction starts
- indication of the best bid in total and/or of the best value of each item
- it sends messages: automatical messages at the start, end and extension of the auction, messages from buyer to all or to selected sellers, message from seller to buyer
- user interface in English
- possibility to bid in different currencies - according to auction setup
Do you want to organize an auction with this application?
If you want to organize an auction, we will arrange the auction setup. It's necessary to specify items and their parameters, list of sellers, date and time and other details. As soon as I will have all the information, I will set up the auction and you will receive the logins and passwords for you and for all sellers. You can test the auction before invitation of sellers to be sure that everything is ok. The auction starts and runs automatically and you just watch the process as a buyer.
Contact
If you are interested in organizing procurement e-auction or just want to ask something, use the e-mail or the contact form please:
E-mail: info@tygu.cz
Phone: +420 737 524 456
Contact form: