This is part 1 of a 4 part guide to setting up an eAuction. This segment is on Pre-Bids. To view parts 2, 3, and 4 please follow the links at bottom.



Managing Pre-Bids

A pre-bid is a bid placed by a supplier during the preview stage. Shared bid information is not visible to other suppliers until the bidding period opens.

* Always require them and communicate this clearly


Typical Pre-Bid Requirements

  • Must be on time
  • Must be "market competitive": equal or close to RFP bid
  • A first bid received in an RFP does not eliminate the need or benefit of requiring an Open RFQ prebid


Value of Pre-Bids

  • Forces suppliers to prepare early
  • Validates that they have the ability and understand how to place a bid
  • Occasionally identifies a supplier that has misunderstood a specification, allowing for clarification in time to adjust
  • Can be a very powerful strategy when forced to be market competitive
  • Eliminates need for common Initial Price to all suppliers, which can “pull” prebids up
  • Helps to predict level of participation before bid day
  • Can and often produces guaranteed savings before event even opens for bidding
  • Often jump starts the competition by having multiple bids populate in the event immediately upon opening.
  • Helps suppliers concentrate on the competition during the bid event by requiring they answer RFX questions and item terms up front


4 Elements to an eAuction setup parts 2, 3, and 4

Part 2: Bidding and Timing Rules

Part 3: Event Testing, Setting Ceiling and Reserve Prices

Part 4: Supplier Visibility Formats