Reverse Auction






Reverse Auction

Reverse Auction

Sysoft eRFP SmartProcure 8 Step Reverse Auction Process
Step 1 – Auction Solicitation Creation, Review & Workflow Management
Step 2 – Auction Solicitation Release and Supplier Outreach
Step 3 - Supplier Communication, Support and Followup
Step 4 - Auction Preparation
Step 5 - Training for Responsive Suppliers
Step 6 - Online Auction – active online event
Step 7 - Award Decision
Step 8 - Auction Review for Continuous Improvement and Auction KPI measurement

Sysoft eRFP SmartProcure System helps create the reverse auction solicitation through a solicitation library and supports the workflow management for approval and justification purpose. Solicitation is then released through special features within the system. The buyer uses the release module to finalize all documentation and the Supplier list. The Reverse Auction Engine will email all Suppliers an invitation to respond to the proposal. This email will include the response due date, and a link to download the solicitation and County Instructions. The SaaS system facilitates monitoring of all delivery receipts, read receipts, as well as correct and resend any bounce-back emails. Video conferencing, web conferencing, automated email tracking, and the central document repository enable active communication and follow up. The Supplier questions are automatically tabulated and put online for registered vendors to see. The system reminds the prospective sellers the date and time of reverse auction, question due date and time, response due date and time. The goal is to create active competition for successful reverse auction.

Through the SaaS system – Supplier response module, the Suppliers will submit their initial auction solicitation response, to the Buyer, with all required information except pricing. The Buyer will review the responses to determine which Suppliers are considered “responsive”. The Buyer will qualify a list of "responsiv" Suppliers. Only “responsive” Suppliers will participate in the pricing portion of the Auction. The reverse auction engine uses the proposal evaluation system to develop a Supplier scorecard to assist in the evaluation process. The system them sends out a formal bid invitation to all “responsive” Suppliers informing them they have been approved to participate in the revers auction. They are then invited for system training to get them trained on reverse auction live event. System facilitates the online training assisted with video conferencing. The system facilitates creation of Auction detailed layouts for the auction. This includes pricing details, delivery requirements, bidding one, multiple, or all items, intended sole or multiple awards. The system facilitates the initial auction bids after that. The system then provides a final auction live event packet to the responsive suppliers. This packet will include specific information like auction date and time, bid decrements, units of measure, participating Suppliers and their contact information. It will also provide the solicitation, addendums, and the instructions for online auction participation.

The online auction is a live online event. The live online auction event will be set for a predetermined time depending on the complexity of the bid (typically 30 minutes). Sysoft eRFP reverse auction platform does allow for automatic time extensions which will facilitate active competition. Competing Suppliers will only see their current auction bid and its relative ranking.

A summary data table is maintained with information such as number of bids, top place turnovers, high-low spread%, count of time extensions, and Supplier participation activity matrix. The Supplier view consists of time remaining from the reset time, their current bid amount and rank compared to competing bid amounts, and facility for entering new lower bid.

Active reverse auction support from Sysoft eRFP is available during online auction – the live online event. Responsive suppliers can reach a staff at Sysoft help desk for help via phone, email, and webchat. The SaaS eProcurement system maintains a copy of all bid data and a Supplier communications log.

Various reports are available on the reverse auction:

  1. Reverse Auction Event Report: This is a snapshot of the final viewing screen listing Suppliers, rank, their initial and final bids and how many bids each placed. Visual analytics driven graphs are available for future process improvements and decision making.
  2. Final Reverse Auction Submission Report - This report lists Supplier rank at the end of the event, their final bid amount and a time and date stamp.
  3. Reverse Auction Tabulation Report: From the auction event database the eProcurement SaaS generates an automated auction bid tabulation that is released to competing Suppliers.
  4. Reverse Audit Trail Tabulation Report – This is a detailed audit trail report for every bid amount placed, supplier who placed the bid, their corresponding rank and the time and date stamp for every entry.
The systems finally allow the Buyer to award the solicitation. Configurable Award notice is emailed automatically. The document repository is updated automatically, The Award is published in County Website and the Auction solicitation is closed.

Finally the systems record the Auction KPI’s and the Buyer can use the same for continuous improvement process.