Question on Auctions?

[Former Member]

Hi Friends

Where are forward and dutch auctions used in Live Auctions. Are they used in SRM with SUS component.Can a buyer become seller and use LAC using Dutch Auctions and Forward Auctions or under what scenario dutch auctions and forward auctions are used in SRM

Regards

Raahul

[Former Member]

Thanks Friends

[Former Member]

Hi,

Forward auctions.

during the bidding say 3 bidders has submittted the bids for a particular components X say

Bidder Price/PIECE

A 100

B 80

C 85

When the purchaser feels that the prices can be more competitive rather than selecting the bidder B ,

In th bid engine there is a option to convert this bid into live auctions, but the purchaser will inform the bidder that we are going to conver the bid to the liveacution . the date and the time is sent to each bidder by mail.

During during live auctions each bidder can see the prices and the auctions take place. Finally in the auction the purchase will get the price of Rs 70 .thereby he is saving Rs 10/

This is called Forward Auctions

DUTCH AUCTIONS.

This is applicable mainly in the AIRLINE industry. Normally the ailrines will be overbooked.

Say for a particula flight they can conduct the dutch auctions . Say British airways is conducting this

for a particular flight from Chennai to London .in this the airline will offer say premium for a particular tickets

say if the price is Rs 30000/ticket they will offer that Rs 35000/ticket will be offered and some one wants to avail this offer and their ticket will be cancelled .it is online auction.

Regards

Ganesh

[Former Member]

Thanks Ganesh

how to differentiate a Reverse Auction and Forward Auction.If possible give eg for Reverse Auction only.

Regards

Raahul

[Former Member]

Hi,

What are online auctions?

There are two main types:

Forward auctions - items are sold to the bidder with the highest bid.

Reverse auctions - suppliers compete on price and the lowest bid wins the business.

In brief:

Online auctions can be open to everyone.

Specialist auctions are often restricted to qualifying participants and often conducted using the auction holder's extranet.

The most successful auctions involve many active bidders who trade a relatively straightforward commodity.

Typically an auction event is live for a matter of hours - during this period bidders are usually allowed to withdraw bids.

Experienced bidders often place bids at multiple sites, with many using tracking software, like Auction Manager in Internet Explorer 5, to monitor bid status in real time.

Forward auctions (also known as English auctions)

During a forward auction, the seller puts items up for sale. Bidders compete by posting bids - these drive the price up. Sellers can choose not to sell below a given level by fixing a reserve price.

Well-known sites, like QXL.com and eBay.com, use forward auctions. Although they are best known for selling collectibles, the same techniques apply when selling business-to-business.

Each site has its own rules on issues like:

Accreditation - whether your business has to have a certain accreditation, such as ISO9000, to participate.

Fee structures - there may be a registration fee.

Whether payment is between the parties or through the auction site.

Whether live bids can be withdrawn during the auction period.

The Dutch auction is a variant commonly used for perishable items like fish or flowers. Here, the aim is to minimise the time it takes to sell an item. The seller quotes descending prices until a bidder appears. The first one to bid buys the item.

Reverse auctions

In a reverse auction, suppliers compete for a contract. The buyer sends out a tender document to favoured suppliers who compete for the business. They drive the price down during the auction event, which lasts only a few hours.

Reverse auctions have the most impact on electronic supply chains. They are:

Integrated into the procurement strategies of many large companies.

Likely to become more important in future, particularly in supply chains with few, large customers.

Seen as offering huge cost savings for large companies.

Increasingly suited to complex items like annual contracts - which take account of bidders' service levels and quality standards as well as price.

some useful sites

http://www.ciol.com/ec/news-reports/ongc-introduces-sap-powered-reverse-auction-process/18308104523/...

http://www.reverseauctionsblog.com/

Regards

Ganesh

[Former Member]

Hi,

Forward auction are electronic auctions, which can be used by sellers to sell their items to many potential buyers. Buyers can continuously bid for the items they are interested in. Eventually the highest bidder wins the item.

http://en.wikipedia.org/wiki/Forward_auction

A reverse auction are procurement auctions. The primary objective is to drive purchase prices downward. The buyer may award contracts to the supplier who bid the lowest price.

http://en.wikipedia.org/wiki/Reverse_auction

Regards

Azad