eAuction tools are imperative to sourcing, affecting your sourcing, procurement management, and ultimately, the entire supply chain. However, eAuctions are simply auctions conducted electronically to have a transaction occur between the supplier and the buyer. Reverse auctions and their respective types are the most common types of eAuctions.
software is typically cloud-based, which means nothing is stored locally at your location (or your suppliers’ locations), and all transactions are processed through the cloud. However, not all cloud-based software is the same—some may be intuitive to use while others can be confusing.
If you’re shopping around for eAuction tools, you should consider six main features when making your choice.
Read on to learn more about eAuctions and reverse auctions and some benefits of an eAuction.
1. Support for All eAuction Type
As you’re shopping for eAuction tools, you want to find software that allows for all primary eAuction types: the classic reverse auction, Dutch auction, Japanese auction, and English auction.
This is important because you want to run the auction type that best suits your needs and the procurement of goods and services. Every eReverse auction has a different strategy; for example, suppliers want to stay in the running as long as possible if conducting a Japanese eAuction, where the price starts high and decreases as the auction progresses. Here is a quick brief on each eAuction type:
- Classic reverse auction. Sellers compete against each other to obtain a buyer’s business (the exact opposite style of a regular auction). The buyer can see all bids throughout the auction and then makes an informed decision.
- Japanese auction<. The price stays high and falls as the auction progresses, and the buyer sets intervals when the price drops.
- Dutch auction. A Dutch auction also starts with a high price, and the price begins to fall throughout the auction. The first person to bid automatically wins the auction.
- English auction. This auction works with ascending bids, and buyers can continue to enter bids until the auction has met its reserve or beyond. All bids are transparent, and bidders can see each other’s bids.
2. Intuitive and Easy to Use eAuction Tools
While you want your eAuction software to have robust features, you also want to opt for software that makes it easy for everyone to get on board. Easy-to-use software minimizes the learning curve for both you and your suppliers. Always ask for a demo to see if this software will be a good fit for your company (and your suppliers—their frustration or lack thereof matters just as much). When you do find software that’s a good fit, ensure that it has mock auction features, so everyone is familiar with the process before the real auction begins.
3. Real-time Monitoring and Analysis
Ideally, you want real-time monitoring and analysis capabilities at your fingertips. Real-time data and in-depth analysis allow you to make important business decisions, even in the middle of an auction. For example, you can look at a supplier’s past performance, weigh current prices against historical prices, and weigh your options in other ways during the auction.
4. High-quality Video with No Delays and eAuction Tools
Just as you want everyone on the same page while running the software, you also want everyone on the same page during the auction. It’s best to opt for high-quality video software with no delays. This ensures your auction runs smoothly and no one is “behind,” especially you. These two features ensure no one is at a disadvantage when the auction is in progress.
5. Connectivity with Existing Business Systems
Your tools should be able to connect with your existing business systems, such as client information at-a-glance. Likewise, auction information needs to be completely up to date and connected with your dedicated software to make everything run smoothly. Integrating the two with real-time monitoring and analysis further guides you in making informed decisions during the auction.
To learn more about intuitive, easy-to-use eAuction tools with robust features, speak to a Simfoni representative today about conducting a demo.