Understand e-auction strategy from the suppliers’ and buyers’ point of view and how best to approach them.
Introduction
This course provides a comprehensive breakdown on the use of reverse auctions, providing procurement professionals and suppliers alike the skills and knowledge needed to effectively plan and manage e-Auction projects. This is an efficient and comprehensive guide to understanding e-Auctions Strategy from the suppliers and buyers point of view. It looks at how they can become integrated into your business processes and how best to approach them.
This course is designed for:
This course will benefit procurement professionals looking to develop the necessary skills to optimise the benefits of procurement in achieving organisational goals.
Benefits of attending
This course, through the use of facilitated sessions, group discussion, and case studies will provide delegates with a detailed understanding of:
- Project strategy – understanding the e-sourcing process from the buyer’s perspective and how to match the suppliers knowledge of price and market conditions
- Spend assessment – what methods a buyer can employ to assess cost structure to optimise bidding strategy
- After Auction positioning –post e-Auction actions need to be undertaken as part of post Auction strategy
Key learning outcomes
- How to effectively manage simple to advanced Reverse Auctions
- Understand how to evaluate e-Auction solutions that may replace existing solutions or fulfill totally new requirements
- Implement process steps, procedures and expert knowledge into your current sourcing process.
- How to successfully manage complex scenarios involving multiple suppliers with various groupings of products and/or services
- Improve your ability to identify the optimum cost effective e-sourcing strategy
Course Content
The eSourcing and Auction process
- Planning for the negotiation
- Building person to person relationships
- Probing the issues
- Deploying sourcing methods
- Reaching agreement
Traditional & Contemporary Auction Styles
- Forward Auctions
- Sealed Bid Auction (First Price)
- English Reverse Auction
- Dutch Reverse Auction
- Yankee Reverse Auction
- Eight (8) Contemporary Auction Styles
Auction Theory & Ethics
- Basic Ethics
- Suitability – Pre-Auction
- Visibility – Training and Communication
- Support – Live Event
- Integrity – Post-Award
- Collusive Behaviour
- Supplier Psychology
RF(x) Creation
- Preliminary RFP/RFQ Round
- Introduction of the Auction
Auction Parameters & Dynamics
- eAuction Lots
- Lot Sequencing
- Non-Price Variables
- Event parameters
- Pricing Issues
- eAuction Timing
eAuction Preparation
- Preperation
- eAuction Strategy
- Business Case
eAuction Preparation & Event day
- Extension and Grace Periods
- Lot / Item Staggering
- Minimum Bid Change
- Supplier View
- Feedback Level
- Best Bid Scenarios
- Leading Bid Ties
- Bundle Bidding
- Proxy Bidding
- Bid Cushion Limits
- Business Volume Discounts
- Partial Quantity Bidding
- Item Sets
- Bid Transformation
- Forced Lots
Post eAuction positioning
- Feedback
- Analyse Auction Results
- Deviation of Pricing Structure
- Facts for the Business
Understanding Supplier Tactics
- Emotional Rush
- Incumbent & Non-Incumbent Supplier Reactions
- Supplier Misconceptions & Recommended Responses
