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Increase Supplier Competition & Savings

Auction Software

Deploy different negotiation strategies to increase supplier competition, and remove time-consuming, error-prone individual negotiations when using Scanmarket’s eAuction software.
Quickly determine the true market price and achieve 13-17% average savings vs your current pricing.

Built to Be Used

Auction software doesn't generate value unless it is adopted by its intended users.

With the user at the center of everything, Scanmarket provides advanced functionality purposely built for the end-user in an effortless experience. Secure fast and broad adoption with a high level of agility.

Expert Support

Create Conditions for Better Deals

With expert support as our recipe for success, we provide process transparency in a seamless experience for both buyers and suppliers interacting with our auction software.

Multiple Auction Types

Different auction strategies require different auction types. Utilize the different auction types including Japanese, Dutch, Reverse and Forward to achieve your specific goals.

Configurable Bidding Rules

Deploy numerous, configurable bidding rules to match the event to the situation including bid parameters, individual starting prices, blind.

Consulting Services

eRFx bids can be transferred into eAuction opening bids. There are additional flexible services that can help support your execution.

Whitepaper

2021 Global eAuction Index

2021 was a year of record breaking quarters with a significant variance in savings. Download the Global eAuction Index to uncover insights into global e-auction savings, volume, geographic distribution, category performance and more.

Illustration of the average eAuction savings achieved in 2021 by region.

What Can You Purchase Using Auction Software?

There are very few limitations when it comes to which products and services can be negotiated via e-auction tools.

We recommend considering the areas below when evaluating if a category is suitable for use with auction software.  

If you would like to know what others are auctioning when using strategic sourcing tools, check out our 2021 Global eAuction Index.

 

 

Spend

Is the size of the contract sufficient enough to stimulate interest from suppliers and competition in the form of bidding?

Specification

For auction software to be effective, specifications should be clearly written and unambiguous. This ensures that the suppliers know what they are bidding for.

Suppliers

Are there enough suppliers in the marketplace to take part in the negotiation? The more suppliers you have, the more bids will be generated during the auction, and the better the savings you will achieve.

Supply

Is the market supply competitive and with surplus capacity?

A Competitive Edge Makes
All the Difference

Streamline your negotiation processes and reduce cycle times by 50%.

Negotiate with more suppliers in a structured process that removes the need for time-consuming individual discussions.
Scanmarket delivers negotiation and process transparency, making it easier to compare like for like and ultimately reducing the final price.

Auction software can help you transform a traditional 3-4 week negotiation process with 4 suppliers into a fast and dynamic negotiation completed within 1 hour. This means 20+ rounds completed with 10-20 suppliers. Truly efficient for all stakeholders.

Increase Negotiation Efficiency

The majority of e-auctions run for less than one hour, cutting out days or weeks from the traditional one-on-one negotiation cycle time. Copy and re-run e-auctions with prebuilt templates, and automate bid analysis and reporting.

 

Gain Market Transparency

In addition to driving down costs, e-auctions provide transparency into the true market value of the products and services.

 

Auction Types

It is important to have multiple auction types to choose from in order to design the best possible e-auction process.

The majority of e-auctions are Reverse Auctions. 80% of all the auctions we see are Reverse Auctions:

  • 58% Cherry Picking Auctions
  • 16% List Auctions
  • 6% CherryLot Auctions

The remaining use of e-auction types are:

  • 2.5% CherryDutch Auctions
  • 15% Japanese Auctions
  • 2.5% Forward Auctions

Additional eAuction Functionalities

Parameters
Run auctions with additional parameters other than price. This could include various currencies, quality, payment terms, switching costs, etc.

Reserve Price Indicator
Show suppliers when the buyer’s reserve price has been reached and the winner of the auction will now receive an order

Blindfold Participants
The buyer can blindfold participants on certain product lines or lots.

Proxy Bidding
Proxy bidding may be allowed during or prior to an auction. When a supplier places a proxy bid the system will automatically bid on the supplier’s behalf until the supplier is leading the auction or he has reached his proxy bid.

Link Lines
Link certain product lines in e.g. a CherryLot™ auction to ensure that the change of one price in one lot (e.g. raw materials) will also affect other lots.

Partial Quantity Bidding
Allow suppliers participating in an event to bid for a partial quantity, not only the total volume.

Individual Starting Prices
Start the auction at individual price levels for suppliers. This could for example be based on individual quotations received from suppliers prior to the auction start.

What are eAuctions? - Theory & Best Practice

Learn about the evolution of eAuction, types, strategy, and best practices for deployment.

’’

There is no doubt that not only has eSourcing helped us to select the best suppliers, it has also resulted in significant savings and better market transparency. When you take a look at the overall result, I can say for sure that I would never have obtained savings as large as these in a traditional face-to-face negotiation.

Jeppe K. Pedersen, Category Manager at Grundfos A/S Strategic Purchase

Our Customers

Negotiate the Best Deals with Scanmarket

Key Features

  • Increase cost savings
  • Increase negotiation efficiency
  • Save time
  • Enhance process transparency
  • Optimize supplier decision making
  • Unique supplier login
  • Standardize negotiation process
  • Optimize TCO

Full Visibility & Transparency

  • Process and selection transparency for suppliers
  • Automated process and activity history log
  • Full communication visibility for internal stakeholders

eAuction Formats

  • Reverse Auctions
  • Step/Factored Auctions
  • Forward Auctions

 

eAuction Types & Templates

  • Japanese
  • Dutch
  • List
  • Cherry Picking
  • CherryLotTM 

 

Additional Cost Parameters

Delivery, lead times, payment terms, service Level, design features, and more

Configurable Bidding Rules

  • Individual start prices
  • Proxy bidding
  • Bid ranking
  • Reserve price indicator
  • Partial quantity bidding


Support & Integration

  • Templates
  • 24/5 support for internal users and suppliers
  • Support for execution, event design, strategy, and volume

Maximize Supplier Savings

Drive supplier bids down by placing them in the highly competitive environment of an e-auction. eAuctions are a proven method of driving bids down by compressing the prices of the other participating suppliers.

Increase Negotiation Efficiency

The majority of e-auctions run for less than one hour, cutting out days or weeks from traditional one-on-one negotiations. Prebuilt templates and automated bid analyses drive even more efficiencies with the ability to copy and paste and re-run.

Best Overall Value

Evaluate suppliers on best overall value and total cost of ownership by including factors such as cost switching, delivery and payment terms. Sometimes the best price doesn't deliver the best value, so quality differentials can be part of the real-time bid calculation.

Market Transparency

In addition to driving down costs, e-auctions provide transparency into the true market value of products and services.

Replicate Negotiation Scenarios

Deploy multiple e-auction types to match real-life scenarios and objectives.

  • Several suppliers or a single supplier
  • Compress pricing to drive savings
  • Find a new supplier or source from several suppliers
  • Negotiate with an incumbent or preferred supplier

Scanmarket Recognized as a Leader in Auction Management

Scanmarket was recognized for the 2nd year running as a leading source-to-contract software provider in the 2022 Strategic Sourcing Data Quadrant report by SoftwareReviews.

Find the True Market Price 

Explore all the intricate details about Scanmarket's e-auction software.

Reduce Prices with Increased Competition

Learn how Scanmarket's e-auction software can facilitate your negotiation process. 

Improve Negotiations

Enhance Process Transparency

Gain complete visibility into all steps of the S2C process by focusing on data, not relationships. Remove all conflicts of interest, and eliminate the risk of fraud or bribery.​

Increase Supplier Credibility

Build sustainable supplier relationships with transparency into the full process and selection criteria. Remove hidden agendas, and treat all suppliers equally.  

Automatic Documentation

Gain full access to historic strategies, decisions, and results with automated processes to ensure transparency.

Use Templates

Reuse processes and templates to save time, and standardize negotiations across the organization.

Engage Stakeholders

Increase stakeholder engagement in the procurement process by providing visibility into documents and communications via a shared repository.

Increase Competition

Use Multiple Auction Types

eAuction types such as Japanese, Dutch, and Reverse have different objectives. Scanmarket's e-auction software can facilitate any type of e-auction, and our capable Customer Success team can help you choose the right e-auction for your objective.

Match Bidding Rules to the Situation

Bidding rules could include:

  • Individual starting prices
  • Feedback options
  • Proxy bidding
  • Rank
  • Staggering
  • Reserve price indicator
  • Partial quantity bidding

No Formal Training Required

Scanmarket's user interface is designed to be so intuitive that most users don't even need formal training until they get to the most advanced functionalities. Users can configure their own interface that best suits how they work. No matter how much functionality a system has, it doesn't generate value unless it is used. 

Quick Call Support

Quick Call is a unique Scanmarket service that allows all users immediate access to trained e-sourcing consultants with the click of a button. When you are running a project, it's imperative to get the answers you need, when you need them.

  • Users simply enter their phone numbers on Scanmarket's website.
  • Scanmarket consultants around the world constantly monitor the Quick Call system and return calls immediately.
  • 95% of calls are returned within five minutes.

Quarterly eAuction Savings Reports

Stay up to date on the latest e-auction trends and savings statistics:

  • Efficiency gains of up to 60%
  • Cost savings averaging 12% across categories
  • The current market price for the commodities you need

Book a Demo

Originating from the needs of the procurement professional, Scanmarket's S2C software is built to be used. See for yourself how advanced technology can be as simple as it should be.

Consulting Services

Enjoy the Benefits of Well-Run Events

Scanmarket’s consultants have conducted thousands of e-sourcing events. Let them help you get the best results based on your strategic objectives.

Contract Lifecycle Management

All Contracts Collected and Connected

Collect and connect complex contract negotiations.

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Find the solution that fits your needs.