Japenese Auctions


Background


Japanese auctions are a round bidding format within the AI Procurement tool. The principle is that each round the price decreases by the minimum decrement set meaning that suppliers decide whether they will supply the goods / service at the specified price. This process continues until there is only one supplier left who has agreed to supply the goods / service at the lowest price. The benefit of using a Japanese auction type is that you could potentially run the eAuction with only one supplier as they would not be aware they were the only participant, this could prove particularly useful if the only supplier participant was the incumbent supplier for example.



Creating a Japanese Reverse Sealed Auction


Initially setting up the auction project is the same process as other auctions however the relevant options need to be selected as shown below. Note: Japanese auctions can also be ran as forward auctions (where price is increasing each round) or have open (visible) bids throughout the process.



In this example we have selected Japanese for the auction format, reverse direction and sealed bids. You then need to enter your start date / time, specify a round length and decide if you wish to include margin savings.


Next you need to add the groups / lots required for the eAuction this can be done manually or via the ‘Import from Excel’ option as outlined in the Auction Event Setup guide.



Once all group / lot information has been entered click Continue to move on and add bidder details.

Adding Suppliers/Bidders to the Auction



Now click Add Bidder and select the relevant suppliers by checking the box next to them. The search facility can be used to locate suppliers / refine results.



When you have added all suppliers click ‘Select Suppliers’, then click I am sure to confirm.



Supplier specific information now needs to be added, however as Japanese auctions are round bidding format the only information required is which groups / lots suppliers are participating in.



To set the lots each supplier is participating in click on ‘Information required’.



The system defaults to include each supplier in all lots if they are not participating in a particular lot simply uncheck the box next to the group / lot. Currency for the participating supplier can also be changed at this point. To move through suppliers and set participation details simply click Continue.


Once all required information has been entered click Save and close supplier lot setup.


‘Setup Status’ should now be showing as ‘All information set’ and have a green square next to it. Click ‘Save Changes’ to move on.

Advanced Auction Details


Advanced auction details can be accessed by clicking Edit within the ‘Main auction details’ area.

Advanced auction options for Japanese auctions differ due to the auction format; options for a Japanese auction are shown in the following screen.

From this area base currency, bidder feedback options, instant messaging, anonymous status (yes / no) and auction manager can all be altered if required. Click ‘Save Changes’ to return to the auction summary screen.

Public attachments can now be added if required. Once all auction detail has been set the auction can be published to your chosen suppliers.