Comments on: Infosys tackles reverse auction strategy http://www.esourcingforum.com/archives/2009/01/19/infosys-tackles-reverse-auction-strategy-2/ The source of information and best practices in strategic sourcing. Tue, 10 Jan 2012 21:21:12 +0000 hourly 1 By: Lean Education http://www.esourcingforum.com/archives/2009/01/19/infosys-tackles-reverse-auction-strategy-2/comment-page-1/#comment-11969 Lean Education Sat, 22 Jan 2011 09:42:21 +0000 http://www.esourcingforum.com/?p=14353#comment-11969 Like most of you, I received the latest copy of Inside Supply Management, which is the publication issued by ISM – unfortunately, ISM does not post most articles on line so you will need to read it in print or take my word for it... Like most of you, I received the latest copy of Inside Supply Management, which is the publication issued by ISM – unfortunately, ISM does not post most articles on line so you will need to read it in print or take my word for it…

]]> By: Jim Martin http://www.esourcingforum.com/archives/2009/01/19/infosys-tackles-reverse-auction-strategy-2/comment-page-1/#comment-11315 Jim Martin Mon, 19 Jan 2009 18:36:53 +0000 http://www.esourcingforum.com/?p=14353#comment-11315 One way to reduce initial pricing issues is requiring suppliers to start the reverse event at or below their RFQ pricing. Let the reverse auction and market drive itself instead of forcing pricing on suppliers. This can be done via supplier specific opening amounts, or if your current system does not have this functionality, manually monitor initial bids. We also tell our suppliers that an award decision may be made directly from the RFQ, or a second round(reverse) may be conducted. This keeps bids competitive in the initial round. My only experience with having to be accurate in setting initial pricing was in running reverse Dutch format events. The reverse functionality works well If you have a competitive market. Utilize your RFQ results and let the market drive itself in the Reverse Event. One way to reduce initial pricing issues is requiring suppliers to start the reverse event at or below their RFQ pricing. Let the reverse auction and market drive itself instead of forcing pricing on suppliers. This can be done via supplier specific opening amounts, or if your current system does not have this functionality, manually monitor initial bids. We also tell our suppliers that an award decision may be made directly from the RFQ, or a second round(reverse) may be conducted. This keeps bids competitive in the initial round.

My only experience with having to be accurate in setting initial pricing was in running reverse Dutch format events.

The reverse functionality works well If you have a competitive market. Utilize your RFQ results and let the market drive itself in the Reverse Event.

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