801:
dynamic prices. Based on the "Kraljic
Portfolio Purchasing Model", the demanded products and services can be categorized by the two criteria „Profit Impact" and „Supply Risk". Products and services with a low Profit Impact and a low Supply Risk are called "Non-Critical Items". As Roland Bogaschewsky describes them in his essay "Electronic Procurement - Katalog-basierte Beschaffung, Marktplätze, B2B-Netzwerke", they are usually offered by many suppliers and are of little value. Non-Critical Items should therefore be purchased rather cost-effectively. "Bottleneck Items" are products and services which rank high on the Supply Risk dimension and low on the Profit Impact dimension. These items are also usually of little value. The high Supply Risk can be minimized by establishing alternative sources of supply. Products and services which have a high Profit Impact and a low Supply Risk are categorized as "Leverage Items". In this case, usually many suppliers offer these rather expensive items. This leaves room for intensive negotiations and auctions. "Strategic Items" rank high on Profit Impact and high on Supply Risk. Usually only very few suppliers offer these costly items. This categorization makes it possible to choose the method of procurement accordingly. Based on the essay by Roland Bogaschewsky, there need to be enough suppliers for a successful auction and the effort only pays off when dealing with articles that have a high profit impact. Therefore, Leverage Items are predestinated for eAuctions, creating a high competitive pressure which leads to lower prices. An eBidding does not create as much pressure and leaves room for strategic decisions. Therefore, an eBidding is also suitable for items that rank higher on the Supply Risk dimension but are still offered by enough suppliers
831:
after their approval, the eAgreement can be defined. Since web based auctions do not meet the same legal requirements as usual auctions do, defining the eAgreement is a very important step. An eAgreement includes, for example, the general rules of the eBidding, additional contract regulations and the terms of delivery. To make sure, that every supplier has basic know-how of an eBidding, trainings should be conducted. Once the eAgreement has also been approved by the suppliers, the eBidding can start. During a set time frame the suppliers have the chance to make bids. In most biddings, the suppliers can see their current ranking based on the given bids. The results of the eBidding are often part of an overall supplier rating, which leads to a final decision. Lastly, a final report about the eBidding event including its final results is being created.
285:
805:
30:
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780:, in contrast to an eBidding, automatically leads to the acceptance of the best tender by the buyer. As a result, buyers tend to make more competitive offers during an eAuction. Aspects both auction set-ups have in common are: having one buyer and multiple suppliers involved, using the internet for the realtime event and the goal of the suppliers being to win the
863:, the suppliers lower their prices step-by-step, starting with a given price. The bidding ends once no one is willing to underbid the current price. A different option is the English Ticker which gradually declines the starting price by a predefined price interval. To make a bid, the price step has to be confirmed by the supplier. Also a
851:
There might be no ‘‘‘extension‘‘‘ of the auction if a set time is being given. In the case of an extension, the auction elongates itself for a certain time if a supplier makes a bid. This automatically leads to the best price. The length of the extension depends on the number and the complexity of
830:
First of all, the products and the amount needed have to be specified. In the next step, one has to choose a suitable and adapted auction design. After this step, one has to set a date for the online auction and choose potential suppliers. Then the chosen suppliers should receive an invitation and
817:
Researches into bidding practices showed in 2006, that industries in the UK still abide to the exchange of paper documents, but with knowing that there must be a better way, and that CDs and e-mails were not the best solution. In industries, where all the documents are available in an electronic
800:
eBidding can be used if the demand/the product can be specified, if the costs are reasonable with regard to the procurement volume and if multiple suppliers exist who show interest in selling the product using an eBidding. Furthermore, competitiveness needs to exist among the suppliers including
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The ‘‘‘starting price‘‘‘ can be determined by the supplier as well as by the buyer. If the price is too low, the buyers could get discouraged and might leave the auction early. If the price is too high, the buyer faces the risk of buying too expensive and little knowledge of the market is being
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The ‘‘‘bid decrement‘‘‘ can be high or low. If the bid decrement is low, the suppliers can decide more freely which price to choose. Therefore, the bidding is going to be more dynamic. If the bid decrement is high, the bidding steps must be optimally designed to obtain the best
818:
form, still 75% of the projects are bid by exchanging printed documents and 50% of the pricing documents are filled in manually. Nevertheless, the results of the poll showed, that there were huge advantages in exchanging electronic documents. eBidding is most often used in the
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The ‘‘‘bids‘‘‘ can be ‘‘‘visible‘‘‘ for everyone anonymously or only the best price and a ranking are being shown. If the participants can see all bids, the competition becomes visible. This motivates the participants and gives them the opportunity to benchmark their
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event (without awarding commitment) according to defined negotiation rules (eAgreement). A buyer and two or more suppliers take part in this online event.
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is possible. In this case, the suppliers make only one bid per item and then it is on the buyer to decide who the winner is. A Reverse
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AACE International
Transaction, 2007, Available from: Business Source Complete, Ipswich, MA, Accessed: 11 June 2013
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THE DIFFERENCES BETWEEN THE PERCEPTION AND PRACTICAL APPLICATION OF eBIDDING IN CONSTRUCTION INDUSTRY (2012)
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An eBidding is characterized by different parameters, which also define the auction strategy.
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Elektronische
Verhandlungen – Erste empirische Befunde zu Auktionen im Einkauf (2003)
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604:
389:
213:
153:
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1021:
989:
Electronic
Procurement - Katalog-basierte Beschaffung, Marktplätze, B2B-Netzwerke .
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589:
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444:
902:
All bidders have access to the same information and the process is clearly defined
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204:
194:
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21:
925:
Malpractice of the buyer is possible (e.g. artificially created competition)
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is not possible when doing an eBidding, since there will be only one winner.
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Parameters of an eBidding and its influence on the behavior of the suppliers
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227:
199:
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Cost saving due to less person hours, less paperwork and less travel costs
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Investment costs for a bidding platform and for the training of employees
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Three ‘’’auction designs’’’ are possible for an eBidding: In the
Reverse
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The preparation becomes a crucial factor for the success of the auction
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44:
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Good infrastructure (e.g. electricity, internet) is necessary
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Suppliers can react directly to bids from competitors
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An ‘‘‘electronic bidding system ‘‘‘ is an electronic
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893:Time saving in comparison to usual negotiations
983:
981:
745:
245:
8:
1009:E-Bidding for Building Contracts in the UK.
899:Suppliers gain more knowledge of the market
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1001:
967:
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752:
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263:
252:
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791:Overview showing the process for eBidding
946:E-bidding: The New Global Business Trend
890:Bids can be easily compared by the buyer
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995:Heidelberg (Germany), 2002, p. 23–43.
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887:Buyers can reach suppliers worldwide
808:Priorities for eBidding and eAuction
772:eBidding in comparison to eAuction
14:
884:Buyers receive competitive prices
813:History and the current situation
971:Professor Doctor Lutz Kaufmann:
796:Area of Application and Criteria
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28:
991:In: Roland Gabriel, Uwe Hoppe
865:First-price sealed-bid auction
1:
876:Advantages and Disadvantages
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822:and in the retail market.
1024:. Accessed: 11 June 2013.
975:. Accessed: 11 June 2013.
955:. Accessed: 11 June 2013.
720:Private electronic market
63:Retail goods and services
415:Generalized second-price
1020:Thu Anh Nguyen et al.:
410:Generalized first-price
809:
792:
465:Simultaneous ascending
1007:Joseph L. N. Martin:
987:Roland Bogaschewsky:
905:Secure Bidding System
807:
790:
500:Vickrey–Clarke–Groves
205:Live support software
993:Electronic Business.
951:15 July 2012 at the
826:The eBidding Process
380:Discriminatory price
820:automotive industry
690:Revenue equivalence
375:Deferred-acceptance
149:Trading communities
139:Comparison shopping
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460:Sealed first-price
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540:Cancellation hunt
490:Value of revenues
360:Click-box bidding
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944:Sabra Easterday:
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685:Price of anarchy
535:Calor licitantis
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953:Wayback Machine
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912:Disadvantages:
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861:English Auction
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565:Tacit collusion
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430:Multi-attribute
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221:Purchase-to-pay
163:Mobile commerce
144:Social commerce
130:Online shopping
55:Streaming media
37:Digital content
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695:Winner's curse
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869:Dutch Auction
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680:Digital goods
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480:Uniform price
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475:Traffic light
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365:Combinatorial
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340:Best/not best
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335:Barter double
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214:E-procurement
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96:Food ordering
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880:Advantages:
879:
838:
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816:
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763:
714:
615:Domain names
470:Single-price
370:Common value
116:Ride-hailing
91:Distribution
15:
330:Anglo-Dutch
313:Bidding fee
195:Call centre
106:Marketplace
86:DVD-by-mail
71:Advertising
930:References
852:the items.
585:Algorithms
485:Unique bid
440:No-reserve
228:Super-apps
22:E-commerce
650:Virginity
505:Walrasian
435:Multiunit
345:Brazilian
325:Amsterdam
200:Help desk
177:Ticketing
1034:Category
949:Archived
848:results.
778:eAuction
725:Software
715:Ebidding
640:Spectrum
605:Children
575:Contexts
455:Scottish
425:Knapsack
420:Japanese
350:Calcutta
277:Auctions
269:a series
267:Part of
111:Pharmacy
76:Auctions
50:Software
844:prices.
782:auction
766:bidding
620:Flowers
610:Players
600:Charity
560:Suicide
555:Sniping
550:Rigging
530:Shading
520:Bidding
495:Vickrey
450:Reverse
400:Forward
395:English
308:Chinese
303:All-pay
172:Payment
101:Grocery
81:Banking
856:shown.
705:Online
670:Theory
645:Stamps
635:Slaves
510:Yankee
405:French
385:Double
355:Candle
318:Dollar
154:Wallet
121:Travel
660:Wives
625:Loans
590:Autos
390:Dutch
293:Types
45:Ebook
655:Wine
630:Scam
545:Jump
445:Rank
776:An
595:Art
1036::
1000:^
980:^
960:^
937:^
784:.
271:on
753:e
746:t
739:v
253:e
246:t
239:v
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
