Working with Auction Formats

Objective

After completing this lesson, you will be able to Understand key aspects of different RFP and auction templates.

Auction Templates

"You mentioned that you were going through the auction templates, so you may have noticed that there are auction templates with Dutch and Japanese in a few titles. These formats can be used, but I would think that most of our company auctions will be the standard reverse, (English) auction format, in my experience.

In case you have not used Dutch or Japanese formats before, let me quickly go through the key points."

Auction Formats

There are three auction formats available in SAP Ariba Guided Sourcing:

  1. Reverse (English) auction
  2. Dutch auction
  3. Japanese auction

Reverse English

In Reverse English, the buyer wants to purchase an item at a lower price. The bid direction is downwards. The price ceiling is specified, which means the supplier can't bid above this value.

Reverse English auction graph. The bid amounts decrease over time.

Reverse Dutch

In Reverse Dutch, the bid direction is upwards as prices are automatically adjusted until one of the participants accepts the price or the configured time expires.

Reverse Dutch auction graph. The bid amount increases over time.

When to use it?

Dutch auctions are suitable for events in which cost is the primary concern and when there are few, prequalified suppliers. Participants are pressured to bid the best price they possibly can and to bid before their competitors can take the business away.

How to use it?

Follow the procedure in the Event Management Guide.

Reverse Japanese

In Reverse Japanese auctions, participants choose to accept price levels as they drop. Any participant who doesn’t accept a price level for an item becomes inactive and is unable to accept any further price levels for the item.

Used to reduce the amount of active participants in a live event, if they don't meet certain requirements. Participants must act quickly when bidding opens, or they risk being dropped from the event.

Reverse Japanese auction graph. The bid amount reduces over time.

How to use it?

Follow the Procedure indicated in the Event Management Guide.

Note

A scheduled task is required to install Japanese auction templates. To install Japanese auction templates, ask your designated support contact to log a service request.

Disabled Features within Dutch and Japanese Auctions

  • Participants can’t submit bids during the preview period.
  • Disables the overtime option as it's not needed.
  • Disables the ability to import responses by using Microsoft Excel.
  • Forces lots to use serial bidding.

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