🗣️ This article is intended for Buyers. If you are a Supplier, please refer to our Supplier hub content.
Auctions are a powerful negotiation tool that enable real-time, competitive bidding among suppliers. Used effectively, they can drive cost savings, enhance transparency, and streamline procurement processes. In DeepStream, setting up and managing an eAuction is simple and integrated directly into the request workflow.
This article walks you through the steps to set up an eAuction in DeepStream and explains the key configuration areas you’ll encounter.
Setting up an eAuction
You can set up an eAuction as a standalone or as the final stage within a broader, multi-stage Request.
If your goal is to build a standalone eAuction, start from scratch by creating a Blank request: go to the Requests module, click '+ New request', and begin building based on the steps below.
If you're incorporating the auction as part of a larger sourcing process, there are two ways to do so.
Start from scratch, drafting your multi-stage Request - as outlined in the Building and sending a Request article - and simply adding the auction stage following the steps below.
Add to an existing Request by opening it and clicking 'Revise request' under the Request actions menu - as detailed in the Managing a Request article. This reverts back the Request to draft mode, where you can insert the auction stage following the steps below.
Whichever path you choose, here is how to add an eAuction stage.
Navigate to the Stages tab when drafting your Request.
Click '+ Add stage' and select 'Auction stage'.
Set the following parameters:
Start date: Choose when the auction should begin.
Duration: Define how long the auction will last.
✏️ Important to note: The default duration is set to 20 minutes, which aligns with recommended industry best practices. However, you can override this and set a custom duration based on your preference.
Visibility (for multi-stage requests): Choose whether suppliers can see this upcoming stage.
Click 'Save'.
On the Auction tab, configure the auction's settings, then Review & publish the Request.
⚡ Top tip: When you start drafting a new request in DeepStream, a first Exchange stage is always added by default in the Stages tab. Once you add your Auction Stage, you can Delete the default Exchange Stage if it’s not needed, or Reorder stages by clicking '...' on the right and dragging them up or down. Whether your RFx consists only of an auction or includes additional negotiation or qualification stages is entirely up to your company’s preferences and process needs - you have full flexibility to structure your request the way that works best for you.
Once the auction stage is added, a new Auction tab will appear among the other tabs in your request. This is where you will configure all aspects of your eAuction.
Key configuration sections in the Auction tab
When an Auction stage is added in the Stages tab, a new tab, Auction appears. Within the Auction tab, you will find several configuration sections. Here's what each one means and how to set them up:
Awarding principles
Within the Awarding principles field, define how you intend to award the business after the auction concludes.
Click 'Edit' and write your awarding methodology.
Be clear and transparent with suppliers on your decision criteria.
Bidder agreement
Within the Bidder agreement field, specify the terms all suppliers must accept before participating.
Click 'Edit' to write your bidder agreement.
Include any legal or commercial terms relevant to the auction.
Bid feedback
Within the Bid feedback field, decide how much feedback suppliers will see on their bids. This helps create a balance between transparency and competitive pressure.
Click 'Edit' and choose one of the following options:
Rank and lead bid: Bidders see their own rank and the lead bid.
Example: “Your bid is ranked 2 and the lead bid is USD 12,300.00”Rank only: Bidders see their own rank.
Example: “Your bid is ranked 2”Leading or not: Bidders see whether they are the leading bid or not.
Example: “Your bid is not the leading”
Line items
Within the Line items field, define the specific goods or services being auctioned.
Click 'Edit', then click 'Add line item'.
You will be prompted to choose between two options:
New line item – to manually create new items for the auction.
Previous line items – to select from items defined earlier in the Request process.
Click the 'Section configuration' dropdown to set Decimal places accepted and the Currency of the auction.
Option 1: New line item
After clicking 'New line item', there appears a grid.
Fill in the required details:
Description – a short label or name for the product or service.
Unit – the unit of measurement (e.g., hours, pieces, tons).
Quantity – the number of units required.
Click 'Add line item' to repeat this process for each additional item you want suppliers to bid on.
You can rearrange, duplicate, or delete items using the '…' (more options) button next to each item.
Option 2: Previous line items
A pop-up window will appear listing all previously defined items from earlier stages of the Request.
Select the items you wish to include in the auction.
Click 'Add section' to import the selected items into the auction setup.
Bid rules
Within the Bid rules field, set controls around how suppliers can submit bids.
Click 'Edit' to configure:
Minimum reduction:
Minimum reduction controls the pace at which the bids go down. A higher minimum bid reduction makes the price go down faster.
Ask suppliers to reduce their prices by a certain Amount or Percent.
⚡ Top tip: It's generally recommended to use a percentage - specifically 0.5% - for the minimum reduction, as it scales proportionally with the size of the bid.
Suppliers must reduce each new bid by the specified minimum.
Tie bids
Allow or disallow equal-value bids submitted by Suppliers
If allowed, the earliest submission ranks higher
Ceiling price:
Enabled or disabled
Set a maximum bid in the request’s currency
Timing rules
Within the Timing rules field, define how long the auction runs and how bid timing is managed.
Click 'Edit' to adjust:
Duration:
The auction's starting duration (e.g., 20 minutes)
Auto-extension:
Enabled or disabled
Automatically extends the auction if:
A new lead bid is submitted
Any bid is submitted within the last few minutes
Example: 3-minute extension on late bids
Pre-bids:
Enabled or disabled
Allow suppliers to place bids before the auction officially begins, so you can get a gauge of the range of opening offers. Enabling pre-bids also gives suppliers who do not want to participate in the live auction the opportunity to submit prices and compete as these are set before the auction begins.
Defining user permissions for an eAuction
After configuring your eAuction, navigate to the Team tab to define the appropriate permissions for added users (your colleagues).
If you add a Super user, they automatically become an Owner of the Request, with full access to all content and functionality.
If you add a Full user, you can choose to assign them either as an Owner (granting them full access, including team management) or as a Team member. Team members require more granular permission settings - you’ll need to specify which pages they can access and which Request functionalities they can use.
If you add an Authorised stakeholder, they can only be assigned as Team members, with limited access.
When someone is added as a Team member, you can define their permissions specifically for the Auction tab as follows:
No access: The user is unable to read, comment, or edit any content associated with the Auction tab.
Can read: The user has access to read the content of the Auction tab.
Can edit: The user can make edits to the Auction in a draft or a revision.
✏️ Important to note: Authorised stakeholders are unable to ever be given the Can edit permission
Got a question or need clarification? Send us a message by clicking the Help chat button in the bottom right - our AI assistant, FIN, will help you right away, and connect you to our team if needed.