This is part 4 of a 4 part guide to setting up eAuctions. To view parts 1, 2, and 3 please use the links at bottom.



Supplier Visibility Formats

What type of Visibility Options are used and why?


  • All bids can be viewed by all suppliers during open bidding, not their identities.
  • Used typically in commodities or with large supply base suppliers.
  • Used when bids are not compressed in same value range (bids are spread)


  • Suppliers will see only their position and the one of their competitors, not their values neither identities.
  • Used when few suppliers participate , or buyer wants to give suppliers impression or larger market
  • Used when one or few bids have a big spread compared with most bid received.




  • Same as Ranking, but showing only lowest bid.
  • Used when buyer does not want to communicate reserve price
  • Used when buyer knows there are very competitive bids but possible to match buy other bidders


Starting/Reserve Price Guidelines

If suppliers are unable to meet the starting or reserve prices that were set for them, examine how you quantified your factors. Were they based on real hard costs or perception? If you cannot quantify the costs fairly for suppliers, you might have set them too high, which prohibits participation and


If you feel that your factors were quantified in a true cost manner and the supplier cannot adhere to your prices, perhaps you should not invite that supplier to participate in the auction. You need to ensure that you are working with qualified suppliers who can meet your business needs.


Set starting prices (ceiling prices) on a per supplier basis, for each item or lotCompliance with prior negotiated prices for suppliers are honored


We have changed the approach to setting variable starting prices, so that these can be set by supplier, by line item, before an event launches. For example, this is helpful when pulling offline contract pricing into events as starting ceiling prices.


4 Elements to an eAuction setup parts 1, 2, and 3

Part 1: Pre-Bids

Part 2: Bidding and Timing Rules

Part 3: Event Testing, Setting Ceiling and Reserve Prices