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Difference between Bidding and Live Auction in SRM

Former Member
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Hi,

I am trying to find the differences between a normal bidding process (bid invitation --> bids) and live auction, apart from live auction being a live activity.

Could someone please help with this? It would be very helpful to know, in which scenario a live auction can be used in place of the normal bidding process.

Thanks & Regards

Saravanan.

Edited by: Saravanan Sadasivan on Feb 12, 2008 11:28 AM

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Answers (1)

Answers (1)

Former Member
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Hi,

basically the process is the same, just the speed is different.

Auctions are used for finding prices for defined products, Bid Invitations are for more complex RFPs and RFQs. It also depends on the vendor and commodity structure, where to use which element.

Cheers,

Claudia

Former Member
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Thanks Claudia. I found some differences as well.

Bid Invitation

-Bid invitations, including price

and non-price variables

- Longer response time for bidders

(from days to weeks)

- Bidder sees no information on

competitors’ bids

- Well suited for a large variety of

goods and services, including

raw materials, services, and

projects

- Sourcing is based on value

propositions (e.g. high quality,

fast deliveries) rather than price

Reverse Auction

- Bidding is based on price only

- Short bidding window (hours)

- Rank, best bid, and next bid can

be displayed in real-time

- More suited for commodities, or

goods and services with

standard attributes that vary only

slightly from supplier to supplier

- Market dynamics of auctions

works best when the

buyer/supplier relationship is

loosely-coupled

Regards

Saravanan.