on 02-12-2008 10:20 AM
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
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
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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.
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