eAuction software has become an integral part of eSourcing, procurement, and the overall supply chain. For most companies, gone are the days of spreadsheets, endless phone calls and emails, and the tediously slow time it can take to source materials or services. eAuction benefits are many—while they’re not the most viable choice for every sourcing process, they are an excellent fit for many industries. For example, reverse auctions are terrific eAuction solutions and are ideal for components, raw materials, processed goods, travel, and more.

However, some companies are beginning to question whether their eAuction platform is doing all it can for them. If your current eAuction solutions are falling short, maybe it’s time to review what you’ve got and see if you have the functionality you really need to make things cohesive and efficient. After all, your software should work for you, not the other way around! Read on to learn more about enterprise eAuction solutions, the must-have features you should be looking for in software, and a brief overview of reverse auctions. 

What Is a Reverse Auction?

You probably already know that reverse auctions are the most popular type used when it comes to eAuction solutions. Simply put, a reverse auction is the opposite of a traditional auction—instead of buyers bidding against each other to acquire what a supplier has to offer, the buyer invites suppliers to the auction event and suppliers compete against each other for a contract. There are four main types of reverse auctions:

  • Ranked. This is the most common reverse auction type, where bidders can see the rank of their bids. 
  • Open (English). Also called open ascending auctions, in English auctions, the bid incrementally increases until bidders go no higher.
  • Dutch. Dutch auctions are somewhat the opposite of English auctions and are also known as open descending auctions; the price starts high and increases incrementally.
  • Japanese. Similar to a Dutch auction, a Japanese auction reduces in price as the auction progresses; however, bidders can accept or decline the bid during the auction.

There is strategy involved when it comes to the different types of reverse auctions, but what’s important to remember here is that your eAuction solutions should be able to handle every part of the eAuction process, including the ability to perform each type of reverse auction. Depending on your industry and your needs, you may want to perform several different types. 

What Are Enterprise Solutions?

According to IT giant Gartner, enterprise solutions are, “designed to integrate multiple facets of a company’s business through the interchange of information from various business process areas and related databases.” Another large part of enterprise solutions is the ability to look at and analyze real-time data. Enterprise software, including enterprise auction software, should be multifaceted and can meet several needs within a company. 

So, what does this actually mean? Your eAuction process and software should be able to perform at the highest level. However, part of the problem is that many eAuction solutions can be quite cookie-cutter, which doesn’t add any multifaceted value to your business. Composable, custom eAuction solutions exist to solve this complex problem.

What Are the Must-have Features of eAuction Software? 

Having a custom e-Auction solution to streamline your process is a necessity. Not all eAuction solutions are created equal, and basically what you’re looking for is customizable software that meets your own unique procurement needs. The fundamental core features of your eAuction software are the most important thing to look at when deciding on eAuction tools. Fundamentally, you’re looking for core features, such as:

  • Flexibility and customization. The ability to perform any type of auction (standard, Dutch, English, Japanese)
  • Self-service. Additionally, notification abilities
  • Integration. The capability to work with your other systems and automated workflows
  • Security. Knowing that both you and your suppliers are completely protected is a must
  • Performance and quality. Having peace of mind that your video won’t be interrupted and having the ability to be on a network without interruptions, no matter how many users may be logged on

Composability and customization are two tenets of eAuction solutions that are the most important to your process. However, it’s still important to look at the core components of your software for the peace of mind that you’re streamlining both your procurement and overall supply chain processes.Image of a gavel for an article about eAuctions and enterprise solutions.

To learn more about how Simfoni’s powerful and intuitive eAuction solutions can help you build and optimize supply chain resilience, schedule a demo today!