Uploaded byMadhusudan Partani
Reverse Auction
The document discusses reverse auctioning as a procurement method where buyers list items for sale and sellers bid to offer the best price, with anonymity maintained among bidders. It highlights the process and benefits of reverse auctions, including cost savings, efficient sourcing, and the transition to online business practices. The evolution of this concept is illustrated by successful examples such as priceline.com and the Indian vortal teauction.com.
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Reverse Auction
- 1. REVERSE AUCTIONING By:Rajat Rathore(91042) Pragati Saraf(91040)
- 2. Buyer ReverseAuction Suppliers
- 3. “ Reverse” Auctioning….An acquisition technique which allows prospective buyers to list any item(s) they wish to buy, and the sellers bid to provide the best price Defining the concept
- 4. Reverse auction buzzstarted with the success of www.priceline.com . The success story continued with numerous vortals doing huge business in their area of specialization. The first Indian vortal on tea www.teauction.com had revolutionized the contemporary business practice of Tea Auctions. Short History
- 5. Suppliers pre-screened andapproved. Suppliers are issued passwords. Only suppliers with passwords can participate in the auction Offerors are anonymous to all participants see a bidder number, not the competition’s names. Evaluation criterion can be price or best value. Interested Suppliers apply online and get approval Reverse Auction
- 6. Company Posts aPurchase Request Company Selects Time Frame For Auction Sellers Bid On Purchase Request – New Bids Going Lower and Lower Auction Ends Company Contacts Seller to Purchase Product or Service Reverse Auction Process
- 7. No, All purchasesare up to the sole discretion of the Company. Factors which influence Companys may include but are not limited to: Does the lowest bidder always win the bid? Seller’s Capability Seller’s Reputation Seller’s Location Seller’s Price Seller’s Quality Seller’s Delivery Date Seller’s Terms
- 8. Offerors Competing canbe anywhere in the world…just need to have Internet access Bidder 1 Bidder 2 Bidder 3 Bidder 7 Bidder 6 Bidder 5 Bidder 4
- 9. To ease thetransition to doing your business over the Internet. To maximize the purchasing power of the company. To maximize the negotiating power of the company. To find alternative sources of supply. Purpose of this mechanism
- 10. The company willsend complete information about its adoption of internet as buying mechanism to world’s leading exporters. The approved sellers will be intimated through email (once data base is set up). Intimation about an action
- 11. The admistrative costsaving of finding new sources of supply The cost saving in form of fast order placing Lower costs through competitive and cooperative bids Cost Savings
- 12. 100% Paperless ProcessAuction and issuance of Purchase Order completed in less than 1 hour Virtual competition Best Price/Value For Buyer Results
- 13.
Editor's Notes
- #3 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #5 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #6 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #7 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #8 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #10 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #11 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #12 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.
- #13 1. Government and in some cases reverse auction partner can identify potential sources. 2. Government will screen sources for best candidates based upon selection criteria and past performance. 3. Responses to RFP's are reviewed and competitive range is established. 4. Suppliers in the competitive range are issued passwords and allowed to participate in the event. 5. Criterion for award are left solely to the discretion of the Government.