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The Auction module facilitates quick tender negotiations on supplier conditions and prices.

// Sourcing auctions

In  sourcing auctions, the buyer procures a product or service  with a set  maximum price (opening price).  Potential suppliers compete for the opportunity to sell, offering lower and lower prices. The organizer has the option to make delivery and payment terms, and other parameters also subject to competition.

Apart from significantly shorter procurement processes, the biggest advantage with this method is to achieve the best available price for products and services.
Fluenta’s Auction module supports all auction types commonly used. The most important of these are:

  • "Dutch" auction
    Bidding is made along increasing parameters (price).
  • "Japanese" auction
    Bidding is made along decreasing parameters (price).
  • "Bundle" auction
    The offer is requested for one or more items simultaneously but the winner is determined on the basis of the total amount of offers for all the items. By using a spreadsheet attachment we can request detailed, item-level bids and have suppliers compete for several hundreds of items, such as stationery, concurrently in a single Excel file.
  • "Cherry picking" auction
    The offer is requested for several items simultaneously but the winners for the individual items can be different suppliers.
  • "Scorecard" auction
    In the course of bidding, suppliers are assigned weights and their offers are adjusted accordingly; the winner is selected on the basis of the adjusted offers.
  • "Multiparameter" auction
    All participants compete within several parameters such as price or payment and delivery terms. and the competed parameters are taken into consideration in the procurement decision with a weight determined in advance.
  • "Reverse price" auction
    The competition is open if a previously determined price advantage is reached. If not, it is the present supplier wins.
  • "Discount" auction
    This type of auction makes resellers compete. They bid on a rate of discount provided by the manufacturer’s list price, along percentage points.

// Sales auctions

Typically, sales auctions work the same way as sourcing auctions.

In a sales auction, the aim of the organizer is to sell the products described in the conditions (such as idle stocks or real estates). The organizer sets a minimum price and potential buyers compete for the product by offering a higher bids.

The greatest benefits of the process are selling products efficiently at the highest possible price, obtaining better delivery and payment terms; and building new sales relationships.

Key business benefits:

  • Concentrated and quick simultaneous negotiations with multiple suppliers
  • Supports all type of auctions
  • Extensive supplier database for a
    wide variety of products and services

 

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