eAuction Software
Scanmarket Features & Benefits
Deploy Different Negotiation Strategies to Increase Supplier Competition
Quickly Determine True Market Price and Achieve 13-17% Average Savings
Scanmarket’s eAuction helps procurement professionals negotiate with more suppliers using an efficient and structured process that removes the need for time-consuming individual discussions, delivers process and negotiation transparency and reduces final price through increased supplier competition.
Configurable Events Repository
Configure the columns you’d like to see with a simple drag-and-drop feature and use auto-generated widgets to provide out-of-the-box insights.Save your own pre-filtered views, customize the names of the views, and favorite the ones more frequently used. Filter and search on every meta-data field to find the events you are looking for.
Instant Dashboards and Reports
Pre-configured dashboards provide useful analytics and KPIs, and the powerful search and filter functionality allows you to easily generate the analytics you need. Run reports containing 100s of records, including all history and savings tracking. Save your specific report configurations to easily generate your favorite reports.
Using the Right Type of eAuction
Scanmarket provides multiple eAuction types to choose from to help you design the best possible process.
The majority of eAuctions are Reverse Auctions. 80% of all auctions are Reverse Auctions:
- 58% are Cherry Picking Auctions
- 16% are List Auctions
- 6% are CherryLot Auctions
Usage of other eAuction types shows:
- 2.5% are CherryDutch Auctions
- 15% are Japanese Auctions
- 2.5% are Forward Auctions
Additional eAuction Functionalities
Parameters
Enables the buyer to run auctions with more than the price parameter such as various currencies, quality, payment terms, switching costs etc.
Link Lines
Enables the buyer to link certain product lines together in e.g. a CherryLot™ auction thereby making sure that the change of one price in one lot e.g. Raw material also will affect other lots.
Proxy bidding
Proxy bidding can be allowed during the auction and also prior to the auction if wanted. When a supplier places a proxy bid the system will automatically bid on this supplier's behalf until the supplier either is the leading supplier or he has reached his proxy bid.
Reserve price indicator
Enables the buyer to show the suppliers when the buyer's reserve price has been reached and e.g. an order now will be placed to the winner of the auction.
Individual Starting prices
Enables the buyer to start the auction at different price levels for his suppliers. This could e.g. be at their individual quotations received before the auction start.
Partial Quantity Bidding
Enables the buyer to allow suppliers participating in events to bid for a partial quantity, and not only the total volume.
Blindfold participants
Enables the buyer to blindfold participants on certain product lines on this product line or lot.
Reverse eAuction
Reverse eAuction
Buyer View
Example of a Reverse Cherry Picking eAuction. The buyer screen provides real-time updates on supplier bids, rankings, and savings.
Reverse eAuction Options
Supplier View
75% Ranking
Show suppliers their rank in the bid hierarchy. The supplier will only see their own rank, not the other suppliers’ rank or the total number of suppliers.
47% Leading/Not Leading
Blindfold the rank in the bid hierarchy and only show the suppliers whether they are leading or not leading. This is marked by either green, yellow or red lights.
28% Show Leading Bid(s)
Show suppliers the best bid in the auction, even though the particular supplier has not submitted the bid.
Reverse eAuction Example
Cardboard Boxes
4 suppliers invited to bid
Savings from current price: 15.43%
Savings from current price: USD 62,000
Duration: 73 minutes
Number of extensions: 14 (2 mins. each)
Step eAuctions
Step eAuctions - Dutch
Buyer View
Dutch eAuctions are based on a “first-come, first-served principle”. During the auction, the $-amount is increasing in pre-defined amounts and time intervals.
Dutch eAuction Example
Steel Parts
1 supplier invited to bid
No visibility to the bidding of other potential suppliers.
Savings from current price: 13.68%
Savings from current price: EUR 288,000
Step eAuctions - Japanese
Supplier View
In Japanese eAuctions suppliers must actively accept each proposed bid to stay in the auction. During the auction, the $ amount is decreasing in pre-defined amounts and time intervals.
Japanese eAuction Example
IT Services
2 suppliers invited to bid
No visibility to the bidding of other potential suppliers.
Savings from current price: 17.75%
Savings from current price: USD 220,000
Dutch & Japanese eAuction Advantages & Disadvantages
Dutch or Japanese eAuctions are very effective. Dutch eAuctions are based on a “first-come, first- served principle”, while in Japanese eAuctions suppliers must actively accept each price suggested to stay in the auction. In both eAuction types suppliers are not aware of how many competitors are invited and they have no visibility of how the other suppliers are bidding.In general, Scanmarket recommends either Dutch or Japanese eAuctions when there is a lack of sufficient suppliers to stimulate competition or if there is a large gap from the best to the second-best bid – but this will always depend on evaluation of the individual project.
Most Important Advantages
- You can run these eAuctions if you have only one supplier.
- They are good for heterogeneous market conditions.
- These are very psychological auctions, an advantage if you want to challenge suppliers and status quo a little.
- The auction itself creates the dynamics.
- It is a very fast auction and will save you time.
Potential Disadvantages
- No market transparency for the suppliers.
- Can be perceived as a harsh auction.
- No influence from a competitor's bid as suppliers will not have visibility to them.
Scanmarket a Leader in Procurement Management
Scanmarket was recognized as a leader in the 2023 Strategic Sourcing Data Quadrant report from SoftwareReviews - for the 3rd year running.