When lots are parallel, Can participants create alternative responses is visible. When enabled, participants must submit a primary bid before they can create a secondary bid, which is now part of an alternative bid.
Alternative bids allow suppliers to bid alternate quantities, term values, and/or bundles to show the project owner how to save more money. Suppliers can also be allowed to add their own items.
How are Alternative Bids Helpful?
Sometimes suppliers would like to respond to your RFP or auction in a slightly different way in order to provide you with better pricing. As experts in providing that particular item or service, they often can make suggestions that can save you money.
Suppliers must first respond to the original bid before they can submit an alternate bid using the following types:Three types of alternative responses:
- Can participants create alternative pricing?
Alternative Pricing allows suppliers to submit an alternate bid by providing a different value for term(s).
- Can participants create bundles?
Participant Bundles allow suppliers to group the items in the event together as bundles to provide discount pricing.
- Can participants create tiers?
Tiers allow suppliers to create multiple volume tiers for one or more line items and provide a distinct price for each tier. This allows each supplier to communicate where their price breaks are, based on quantity.
Alternative Bids Example
Suppliers first submit a bid on the items/services and terms that the project owner has created:
Primary bid of 100 units of product x in color blue.
A supplier may suggest a different brand of an item, an alternate material or component in an assembly, or a different time frame for a service. Once the primary bid has been submitted, suppliers can submit an alternate bid such as product x in color black or purple.
Each supplier could potentially bundle items together differently to offer discounts, depending upon their own unique capabilities and costs.
Suppliers may have price breaks at different quantity level tiers, so suppliers could give you one price for quantities 1-100, another price for quantities 101-500, and a third price for quantities 500-1000.Creating Events with Alternative Bids
To open the Event Management Guide's section on how to create events with alternative bids, click Can participants create alternative responses | SAP Help Portal