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Online Bidding Preparation |
- Verify Internet connectivity for all users (Buyers, Admin., Suppliers)
- Have suppliers who need connectivity to begin work now, and report progress weekly
- Give suppliers adequate time to prepare for an event; first ones require more
- Avoid Mondays; Thursday pm is best
- Post all information 4-5 days ahead, so suppliers can gain connectivity and review data
- Suppliers must see your approach, event and actions as consistent, open and fair
- Post FAQs to address usual questions
- Tell suppliers to know their costs ahead of time – total cost and incremental costs
- And to have their decision-maker available during the auction. Most companies would rather retain business at a slightly lower margin, than lose it. If you are auctioning a large package, remind the suppliers that your business can positively change their cost structure (overhead costs spread over a larger volume).
- Make sure new suppliers have gone through training; hold practice session for new suppliers, or do an RFI
- Have suppliers use same computer/browser in training & mock auction as for when a real auction
- Some international suppliers must sign terms, in order to be bound
- If less than 50% of your invited suppliers accept your invitation, your online auction has a greater chance of failure - consider revising your event or question your choice of suppliers
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- Starting price: Avoid both “too low” (excluding potential viable bids and market Intel) and “too high” (signaling the incumbent’s price is low)
- Choose decrement to allow significant price savings without slowing auction too much
- Schedule the offerings so that bidders are not overwhelmed or confused
- Be available to answer supplier questions
- Ensure I.T. is available if technical problems occur
- Consider time zones when setting auction time
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Best Practices