Setting up eAuctions

This article details setting up eAuctions for Buyers.

Anika Gadher avatar
Written by Anika Gadher
Updated over a week ago

This article will cover:

Watch an overview on eAuctions

How to set up an eAuction

Auctions sit at a defined stage level as part of a request. It can be a single auction stage or have other exchange stages before and/or after it.

E-auctions are a market driven digital negotiation method that uses software to allow suppliers to compete for business online, in real time

eAuctions run at a set date & time unlike Exchange stages which are immediately open for completion once the supplier is added.

The stages tab is where you add the auction & set:

  • the start date & time

  • the initial duration

  • the visibility of this auction stage

Once you create an Auction stage, you will see the Auction tab at the top will appear & the workflow illustrated below is to be completed:

Awarding principles:

Defining principles by which you will decide to award supplier(s) bids (e.g. winner takes all) on the conclusion of the eAuction. This establishes a clear commitment from the beginning keeping your suppliers engaged.

This information will be shared with suppliers participating in the bidding process in advance of accepting your agreement and submitting pre-bids.

Bidder agreement:

A binding agreement between Buyer & Supplier to define the terms that suppliers must agree to in order to participate. If a supplier does not agree to the terms of the bidders agreement they will be unable to participate in the eAuction.

Please note: Any bids that are entered by mistake can be withdrawn, however the buyer must notify DeepStream of this error immediately.

Bid feedback: This segments controls what the supplier sees, it is best practice to provide more information to encourage competitiveness between suppliers. Please select one method of feedback.

Line items: This is what the Suppliers are bidding on & where you can change the currency that suppliers will be able to bid in from the top right corner.

.

Buyers are able to pull through line items which were added in previous stages & can use this to track the price of an item through the entire request. At later stages, this will be used to calculate savings & for eAuction configuration.

Click + Add line item and choose whether to add a New line item or to populate using the Previous line items quoted in the previous stage.

Bid rules: outlining the rules you would like your suppliers to adhere to.

Minimum reduction: Controls the pace at which the bids go down, a higher minimum bid reduction makes the price go down faster.

This is a mandatory field, you can choose if your Suppliers to reduce their bids by a set % or by a set amount. Suppliers will not be able to reduce their bid by a value lower than the minimum reduction.

Please note: It is generally best practice to use % for the minimum reduction because it will scale with the size of the bid

You can also set tie bids which enables two suppliers to enter the same price, they will be prioritised in ranking according to who entered the price first.

A ceiling price is the maximum a supplier can bid, this prevents any suppliers from entering a price above the amount you set.

Timing rules:

This controls and dictates when suppliers can bid, and how the eAuction reacts to bids submitted towards the end of the eAuction.

Auto-extension is designed to prevent any suppliers under cutting each other at the last minute. You can set an extension period of time before the eAuction is to end if there is a new lead bid or any new bid at all within that timeframe.

This allows all Suppliers (including the Supplier who was previously the lowest price) to review and respond to, if they wish.

Pre-bid: Suppliers have the option to submit pre-bids so buyers get a gauge of the range of opening offers and suppliers to compete even if they don’t want to participate in the live auction, since they can submit a pre-bid in advance.

After completing the workflow, please go into the 'Stages' tab to input a start time & duration time for the eAuction

Adding a user to an eAuction:

Managing the team who has access to this request sits under the tab 'Team' where you can see '+ Add user'

You can add users as a 'Owner' or a 'Team member'.

Owners have full access to everything where as Team members can have limited functionality.

Owners can manage Team members permissions to decipher their access which can be separated by pages. Please find a list of permissions you can manage below:

Please note: only owners are able to issue a request

Inviting suppliers to your eAuction:

Under the 'Suppliers' tab you can invite companies who already exist within DeepStream and those who are new.

To search for companies who are already within DeepStream, please use the search bar typing in the company name or contact email address

You can also utilise, My lists: Choose from one of your supplier lists to add all suppliers from 1 or more lists to your eAuction quickly.

To send an invite to Suppliers outside of DeepStream, Click into 'Send an invite' and input their email address & company name.

Once you have completed all these steps, please click into the final tab: 'Review & send'.

This is where you should review all the details attached to the eAuction before sending it out to Suppliers.

At this stage you can still edit every segment, once it has been sent to suppliers you will be able to 'revise' the request.

If you have any outstanding fields, this will flag up in a red box to highlight corrections to be made.

After you have verified the information within the request is correct, click 'Send'.

Once the request has successfully been sent, the status will change to 'Live' and a countdown to the start of the eAuction will begin

For any further queries, please email: support@deepstreamtech.com

Did this answer your question?