Hello Aribians! Today's Knowledge Nugget is on effective auction  practices. I've broken this nugget into three essential parts. This is  part 2 - Auction Preparation & Monitoring and Types of Sourcing Events. For parts 1 and 3  please follow the links at the bottom of this post. Enjoy!


1) Best Practices - 7 Steps to Auction Preparation & Monitoring


Step 1: Review Market Making sheet & AS site to determine which suppliers have not completed pre-bid deliverables
(training, accepted lot invitation, etc.)


Step 2: Confirm suppliers’ intention to participate, lot interest and ability to meet starting and/or reserve pricing.


Step 3: Determine where you will be for bid day and how suppliers should contact you & the Help Desk


Step 4: Instruct any suppliers requiring Surrogate Bidding support to contact ARIBA Help desk


Step 5: Prepare a bidder list that includes the suppliers’ bid day contact information and the Lots/Line Items that
            you expect each supplier to bid in (use Qualifying Round file as a basis and add contact information)


Step 6: Be available via phone. Try to keep telephone calls short during the auction. Otherwise, you line may be tied
            up, and suppliers may not stay focused on bidding.


Step 7: Track supplier bidding activity, including:

  • Have all current suppliers submitted bids? Logged In? If not call them.
  • Do bids appear to be valid/appropriate? (e.g., maybe indicates erroneous bid?)
  • Does it appear that they are bidding against themselves?)
  • You may choose to call the supplier if it is the first time they bid in an odd way.
  • If the supplier’s bid does need to be removed, the supplier must call the AS Helpdesk and request that this
    action be taken.
  • Have all suppliers bid in the lots in which they expressed interest?


2) Types of Sourcing Events - What are They?


These event types are more specifically known as reverse auctions in Ariba Sourcing. A reverse auction is a real–
time online event during which participants submit competitive bids for specific goods or services. Since auctions
require a lot of preparation to be successful, sourcing professionals typically prepare for them by running qualifying
information-collecting events (RFIs and RFPs).


Depending on how the event is configured, Ariba Sourcing can provide participants with feedback on how their
prices compare with other participants’ prices, in the form of:

  • The value of the lead bid
  • Their rank in the auction
  • A graph comparing the bids in the auction


Auctions are directly competitive and allow the real-time exchange of information between participants. You must
be carefully schedule your auctions so that all participants can participate at the same time.


This has been part 2 of a 3 part post. I hope it has been informative  and helpful. For posts 1 and 2 please follow the links below.

Post 1: Knowledge Nuggets: eSourcing Part 9: Auctions (1 of 3)

Post 3: Knowledge Nuggets: eSourcing Part 9: Auctions (3 of 3)



This has been another Knowledge  Nugget post brought to you by Beverly Dunn.

For more  information or details please feel free to contact me!