1. Chapter 1: Understanding the Auction Process

An auction is a sourcing event that enables you to invite suppliers into an easy and competitive bidding platform.

It is a sourcing event, but with a real-time bidding strategy at its heart. You can create an auction in the same way as you would create an RFx. An auction provides a platform for conducting real-time bidding. Features such as the ability to have multiple lots of items, extension strategies, safety nets, and several other advanced features, provide you complete control over the auction process to help you achieve the best results while sourcing.

In other words, an auction is a highly effective sourcing tool. Either as part of a sourcing cycle or simply as a standalone cost-reduction exercise, an auction can help bring greater value and transparency to the sourcing process. 

1.1 Types of Auctions

There are three types of auctions for creating an auction. The auction type can be chosen based on your criteria and requirements.

1.1.1 Regular Auction

Also known as an English auction. In this type of auction, the bidders participate in a real-time environment and continuously decrease/increase the bid based on real-time competition feedback.

A Regular auction is useful when the competition is extensive, and you have a clear visibility of the potential savings or profit you want to achieve.

1.1.2 Sealed Auction

A Sealed auction is a type of auction in which the bidders place only one bid. Unlike the other auction types that allow suppliers to continually place bids with each passing interval, the suppliers cannot place interval bids in a sealed auction.

Also, unique to sealed auction is the fact that the bids placed by the bidders are hidden to each other and to you, the buyer. Unlike the other auction types where you can see what the bidders are bidding, in a Sealed auction, you are unable to view the bids till the time the auction event is live.

A Sealed auction is ideal for use when the competition is fierce and the number of suppliers participating in the event are less. It can also be used to conduct a negotiation round after a Regular auction.

1.1.3 Dutch Auction

This auction starts with high or low price, depending on the reverse or forward method. The price then gradually increases or decreases at regular intervals until a bidder accepts the price. The bidder who places the first bid or accepts the bid becomes the winner of the auction.

1.1.4 Japanese Auction

A Japanese auction starts with a high or low price depending on reverse or forward method. The Price goes on decrementing/incrementing at regular intervals. You must accept the bid amount specified in each of decrementing/incrementing step to stay in the competition. You can reject or decline the displayed price. Bidding continues until the number of configured steps are completed or no bidders remain, resulting in the selection of best bidder.

1.2 Event Method

Auction events can be conducted in either forward or reverse. These methods depend on the details and type of the auction that meets your requirements.

1.2.1 Reverse

This is conducted to buy goods and materials from potential suppliers. Bidding usually starts with the highest possible price and decreases gradually. The winner is the supplier having the lowest bid.

This is a descending-price auction, also known as a Procurement or Buy offer. In this format, bids must be lower in price than the previous bids to win an auction. This is the most used auction format in Sourcing, where the bidders compete by lowering their prices.

1.2.2 Forward

This is usually conducted to sell goods or materials. Bidding usually starts with the lowest possible price and increases gradually. The winner is the bidder having the highest bid.

This forward auction type is useful when you want to auction off any surplus goods or materials.

1.3 Need for Auctions

With auctions, GEP Quantum provides a platform to aid you in your process of sourcing and saving. Auctions is a simple, easy, and effective platform, which gives you the opportunity to work with and negotiate with multiple suppliers. Auctions allows you to meet the supplier’s requirements while meeting your budget by offering an easy hands-free approach that utilizes FMV and saves on your sourcing events.

1.4 Viewing Auctions

On successful login, on the GEP home page, click Auction in the global header and the Auctions Workbench page is displayed.

On the Auction Workbench page, you can view the existing Auction documents under the All card. To view Auctions in Draft, Live, Draft -Approval Required, or other statuses, click the respective cards.

The documents are categorized and displayed according to the action required for that Auction. For example, you will view the documents that are pending your approval in the Draft Approval Pending card type.

1.4.1 Searching for Auctions

You can search for an auction event using the search field provided in the grid:

1.4.2 Sorting Auctions

You can apply sorting on the column headers for the arrangement of information, as per your requirement.

By default, the auctions are sorted based on the last modified parameter in ascending order. You can select to sort the auction based on name and created on parameters in ascending or descending order.

1.4.3 Manage Columns

The Manage Columns feature allows you to select which attribute columns you want to view under the Auction tab.

To Manage Columns:

1. Click Manage Columns.

2. The Manage Column slider window is displayed.

3. Click the icon to display/hide the respective column.

4. Click the icon to freeze/unfreeze the respective column.

5. Click Apply.

1.4.4 Filters

You can use an object as the filter for the information displayed.

To access Filters:

1. On the Auction workbench page, click Filters.

2. The Filters slider window is displayed.

3. The left pane displays the objects, and the right pane displays various types of filtering conditions based on the selected object.

4. Select the applicable object.

5. Click Apply to apply the filter.

6. You can also save the filter. To save the filter, click Save Filter.

7. The saved filters can be accessed in the Saved tab.

8. A slider window is displayed wherein you can save the new filter and view the list of your saved filters.

9. To view a list of saved filters, select the Saved tab.

10. To add a new filter, enter the name of the filter in the New field and click on Save link. The newly added filter is seen below the New field.

11. Click on Clear link to clear the name of the filter.

12. Click on Apply to view the results.

13. Click on Star to mark this filter as a favorite.

14. Click on Rename  icon to edit the filter name.