- 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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- Feedback to non-awardees on what they can do to win
- Suppliers must ultimately get the business they earned through bringing attractive prices to the e-auction
- After each e-auction, summarize your lessons learned. Search for root causes to issues
- Don’t permit stakeholders to pose objections based on success factors or supplier criteria not initially disclosed
- Realizing the savings that were negotiated – that’s the key task
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Best Practices