Comments on: Reverse Auction Selection Criteria 101 http://www.esourcingforum.com/archives/2006/11/16/reverse-auction-selection-criteria/ The source of information and best practices in strategic sourcing. Fri, 05 Dec 2008 10:20:11 +0000 http://wordpress.org/?v=2.6.2 By: Ian Makgill http://www.esourcingforum.com/archives/2006/11/16/reverse-auction-selection-criteria/#comment-4020 Ian Makgill Wed, 06 Dec 2006 14:37:48 +0000 http://www.esourcingforum.com/?p=298#comment-4020 There's a more thorough Excel based tool for determining the opportunity for using an auction here: http://www.eratool.net/ The tool looks at a wider range of factors and provides a more thorough analysis of the opportunity as a result. It is freely available and we know that clients have found the tool a useful introduction the issues surrounding e-auctions. There’s a more thorough Excel based tool for determining the opportunity for using an auction here:

http://www.eratool.net/

The tool looks at a wider range of factors and provides a more thorough analysis of the opportunity as a result. It is freely available and we know that clients have found the tool a useful introduction the issues surrounding e-auctions.

]]> By: David Bush - Iasta http://www.esourcingforum.com/archives/2006/11/16/reverse-auction-selection-criteria/#comment-3964 David Bush - Iasta Thu, 16 Nov 2006 16:51:11 +0000 http://www.esourcingforum.com/?p=298#comment-3964 Jean-Philipe, thank you for the additional feedback and adding the 102 level course information. I recently found your blog based on Spend Matters post by Jason last week. It is very good and I plan to read it regularly. Thanks again for contributing. Jean-Philipe, thank you for the additional feedback and adding the 102 level course information. I recently found your blog based on Spend Matters post by Jason last week. It is very good and I plan to read it regularly. Thanks again for contributing.

]]> By: Jean-Philippe Massin http://www.esourcingforum.com/archives/2006/11/16/reverse-auction-selection-criteria/#comment-3963 Jean-Philippe Massin Thu, 16 Nov 2006 11:01:27 +0000 http://www.esourcingforum.com/?p=298#comment-3963 That's right, you can assess quite quickly the viability of an auction. I would as well suggest to go a bit further to reach 95% ;-) of what you need , with following simple considerations: - about the competitive supply base: being careful running an auction when price difference between the best and other initial-offers is higher than 25%, - specifications: the offers proposed by vendors shall be really similar, otherwise you might be disappointed by the winner, - contract status: you generally never run an auction with a strategic supplier, unless you call for a competition between several potential strategic suppliers/partners - Market: if the suppliers you invite know each other - closed market - , they probably will talk together and screw up the auction, agreeing on a way not to be squeezed. In general, when it is the case, you have to find at least another unknown-from-the-others supplier to challenge the closed market. That’s right, you can assess quite quickly the viability of an auction.
I would as well suggest to go a bit further to reach 95% ;-) of what you need , with following simple considerations:
- about the competitive supply base: being careful running an auction when price difference between the best and other initial-offers is higher than 25%,
- specifications: the offers proposed by vendors shall be really similar, otherwise you might be disappointed by the winner,
- contract status: you generally never run an auction with a strategic supplier, unless you call for a competition between several potential strategic suppliers/partners
- Market: if the suppliers you invite know each other - closed market - , they probably will talk together and screw up the auction, agreeing on a way not to be squeezed. In general, when it is the case, you have to find at least another unknown-from-the-others supplier to challenge the closed market.

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