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Reverse Item Level Auction

The Line level Auction is a special version of the Reverse Auction. This article goes step by step through the process of creating a line-level auction to ensure efficient collaboration between platform users.

The 2 distinguish themselves through the way in which the items are approached. As its name implies, the item-level auction focuses on the bids for each of the required items. Starting prices, Minimum steps and budgets are established for each and every one of the items involved. In contrast, the normal Reverse Auction focuses on these elements at the event level.

Suppliers have the option to bid only on specific items and can be selected as winners for specific ones.

To generate such an event, the User selects from the "Advanced settings" menu in a reverse auction the "Item Level Auction" option.

We recommend that you go through the Create Reverse Auction article in order to properly understand the steps that need to be taken to configure it.

Once this option is selected, the "Starting Price" and "Minimum Step" fields in the "General Information" section become inactive and in the 4th Section, Articles, two new item-level columns are added:

  • Starting Price/total – the minimum amount at an item level that the user may accept. Suppliers will not be able to place a quote higher than the starting price for that item. The starting price applies to the supplier's total quotation for an item line. Thus, for suppliers, the total quotation (price / um * quantity) for an item must be less than or equal to the Starting Price.

    • Ex.: Starting Price 5000 EUR, Necessary Quantity: 10 pcs => The supplier's bid cannot surpass 500 EUR per piece because the overall price cannot be higher than 5000 EUR (10 pcs * 500 EUR/pcs)

  • Minimum Step/total - the minimum system acceptable difference between the old and new bid of any supplier at an item level. It is established by the user and the supplier. This value is applied to the total of the item bid (Price/um * quantity).

    • Ex.: Minimum step is 100 EUR, Total Price for the respective item = 5000 EUR => The next bid from the supplier must be smaller or equat to: 4900 EUR. The bid cannot be 4950 EUR because it would not uphold the set minimum step

Item Level Auction Particularities:

  • Suppliers cannot bid zero „0”. The system will display an error message in case this happens. If the supplier does not wish to bid for a certain item, he may leave it blank.

In case a supplier submits a bid greater than the previous one at an item level, the system will display an error message and will highlight in yellow the misaligned item's bid field.

  • If a supplier has submitted an incorrect quotation and wishes a rollback, he can proceed as follows:

    • Delete the bid for the respective item

    • Send the bid with the blank field

    • The system now allows him to enter a new bid without the restriction concerning the previous bid's value

 

To publish a Line Bid Auction, please apply the steps described within the article Publish Reverse Auction.

To monitor the suppliers' bids and/ or close the event, please apply the steps described within the article Monitor & Close Reverse Auction.

Are you stuck in any way? Don't worry, we're here for you. Drop us a mail at support@prokuria.com and we'll get back to you.