An Auction is a Process in which buying and selling of items, services, or products take place.
There are multiple types of auctions for example forward auction, reverse auction, and sealed-bid auction, but I am going to discuss here reverse auction.
In Reverse auction, the buyer throws an Auction to bidders (sellers). Seller bids to purchase any product, services, item, or property but the buyer who bids the lowest will win the auction. At Reverse auction price continually decrease bid by bid and finally, the bidder with the lowest bid wins.
The best example of a reverse auction is bidding for government contracts.
Business Bid’s E-Auction tool helps companies benefit from the cost-savings of reverse auctions while maintaining strong supplier relationships.
Business bid provides e-Auction (reverse auction in which multiple bidders can bid for specific items or services. The buyer creates an Auction and invites suppliers for bidding. The supplier gets a notification via email. In the case of a new supplier, the supplier gets the password to log in to his/her account to bid against any item or service. An old supplier can also see notifications or alerts on his/ her dashboard via login his /her account provided by Business Bid
Suppliers can also pre-bid in case the Auction is not started yet, suppliers can bid one time before the actual time of the Reverse auction starts.
After the Auction starts supplier can only bid between the range set by the Host, the supplier cannot bid more than the budgeted price or the start price set by the host. The supplier also can’t bid below than range or higher than previous bid values.
Business Bid Reverse Auction Tool show ranking to all suppliers for example if a supplier bid, the system will show Rank according to bid value, so supplier should know his/her position for last bid. Higher Rank is the lowest position so the supplier can improve her position by bidding low prices than the previous bid.
If any supplier bids in the last final minutes specified in the 'Applicable During Last' section during creating Reverse Auction, the remaining time automatically resets to the time selected in the Automatic Extension Period. It helps suppliers to win auctions, for example, a supplier is at Rank 3 bid during the last minute, and his/her bid value is lowest the rank of the supplier changes to Rank 1. Auction remaining will be the remaining time automatically resets to the time selected in the Automatic Extension Period so other suppliers can also get a chance to win the auction.
In the Live e-Auction Summary Host can monitor the suppliers’ bids, the value of the bid, time, and Rank of the supplier. It maintains a history of all supplier’s bid values and ranks with date and time.
Auction Graphs show bidding data graphically to host for quick and easy understanding, there are four types of Auction graphs in Business bid e-procurement software.
Participant Progression Graphs show Starting Bid Value and Last Bid values of Suppliers Graphically.
All Bid Progression Graphs Shows Bid Values and Time for All Suppliers. When supplier bids, it is displayed on the graph by placing dots against Bid Price and Time. This Graphs always drop downwards as Bid Values for Reverse Action Always decrease.
Best Bid Progression Graphs Shows Lowest bid value and Time. This Graph Should always be downwards. As Bid value always decreases in Reverse Auction.
Saving Progression Graph Shows Saving from Budgeted price (Difference from Budgeted price and best price). This Graph always Increase Upwards with time.