Participating in a Reverse Auction
This article goes through the entire process of participating in a reverse auction to ensure efficient collaboration between all the users of the platform.
1. Introduction - how to respond to a reverse auction
Suppliers can use Prokuria without creating an account on the platform.
When a Buyer decides to publish a reverse auction using Prokuria, all invited Suppliers receive an email with a
link to a secured response page where they can review all the details of the Reverse Auction, fill in the answer
and submit their bids.
2. View the details of the reverse auction. Accept or Decline Participation
Once the supplier receives the invitation in the mail, he can click on the name of the reverse auction to open a dedicated page containing all the information related to the event, giving him the opportunity to quote and respond.
When a buyer publishes a reverse auction, all invited suppliers receive a notification via email. It contains a link to a secure page where one can review the event information, quote and submit a bid.
The supplier then has 2 options:
Participate– if clicked, the Buyer will be informed by email that the Supplier has decided to participate in the reverse auction
Decline – if clicked, the Buyer will be informed by email that the Supplier has declined to participate in the reverse auction. However, Suppliers can change their mind, and still accept to participate in the reverse auction, as long as the reverse auction is still active.
3. Placing a Bid
Only after the Supplier accepted to participate in a reverse auction, do the fields on the page become active in
order for the Supplier to bid. However, a Supplier can only submit bids after the reverse auction has started.
A response page includes three sections. Sections have the following fields and functionalities:
When placing a bid, a Supplier should take into account the following:
Starting price: the maximum amount, as a sum of all items, that the Buyer will accept. If a starting price is provided by the Buyer, Suppliers will not be able to place a higher bid than the provided amount. If there is no value provided as a starting price, there will be no restriction for Suppliers’ first bid.
Extension period: is expressed in minutes and represents the period of time before the auction ends. This extension period is also referred to as the “cool-down period”. Whenever a bid that changes the first rank is placed during this cool-down period, the reverse auction will be extended with the number of minutes specified by the Buyer. This will continue until no bid that changes the first rank is placed
during the cool-down period.
Minimum step: is the minimum difference between a Supplier’s new bidding price and the same Supplier’s previous bidding price. The minimum step is specified by the Buyer and the Supplier can always lower the bids by larger amounts if desired.
Timeframe: a Supplier can submit bids only after the reverse auction’s start time, and no later than the end time; as per the above, during a reverse auction the end time can be extended automatically due to the cool-down period settings.
When submitting a bid in a reverse auction, Suppliers can only decrease the bid. Suppliers cannot place the same bid twice and the new bid value cannot be higher than the previous one.
A bid can only be placed after all the unit prices of all items have been filled in. This is always a mandatory field and bids can’t be submitted without filling it.
During the timeframe of a reverse auction, suppliers may be able to view the following details related to the rank and best bid value:
Suppliers will be able to see whether they have the best bid or not.
Suppliers may be able to see their own rank as compared to the other Suppliers participating in the reverse auction. The ranking is displayed only if the Buyer has enabled this feature. If a Supplier has the best bid (rank 1) and another Supplier in the reverse auction has placed the same bid, both Suppliers will see that they have the best bid, and a notification will be displayed at the top of the response page.
Suppliers may be able to see the value of the best bid (rank 1), only if the Buyer has enabled this feature.
4. Cool-down period in reverse auctions
Whenever a bid that changes the first rank is placed during the cool-down period, the reverse auction will be extended with the number of minutes specified by the Buyer. This will continue until no bid changes the first rank during the cool-down period.
5. Ending a reverse auction
When the end time for submitting responses is reached, the reverse auction will end, and the Suppliers will no longer be able to submit a new response.