E Auction Final

8/6/2019 E Auction Final

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Fundamentals of E-Auctions

auction

Market mechanism by which buyers make bids and sellers place offers;characterized by the competitive and dynamic nature by which the finalprice is reached

electronic auctions (e-auctions)

Auctions conducted online

dynamic pricingPrices that are determined based on supply and demand relationships atany given time


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Types of Dynamic Pricing


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Types of Forward(Regular) Auctions


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The E-Auction Process


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The E-Auctions Process

y Phase 1: Searching and Comparing

y Finding When and Where an Item Will Be Auctioned

y Auction Aggregators and Notification

auction aggregators

Companies that use software agents to visit Web auction sites,find information, and deliver it to users

y Browsing Site Categories

y Basic and Advanced Searching


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y Phase 2: Getting Started at an Auction

y Registration and Participants Profiles

y Listing and Promoting

y

Pricing

y Phase 3: Bidding

y Bid Watching and Multiple Bids sniping

y Entering a bid during the very last seconds of an auction andoutbidding the highest bidder (in the case of selling items)

y Proxy Bids


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y Phase 4: Post-auction Follow-Up

y Post-auction activities

y Bidding notifications

y End-of-auction notices

y Seller notices

y Postcards and thank-you notes

y User communication

y Chat groups

y

Mailing listsy Message boards


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y Additional Terms and Rules

vertical auction

Auction that takes place between sellers and buyers in oneindustry or for one commodity

auction vortals

Another name for a vertical auction portal


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About

y SPOT Buying

What??

Where it is used??

Process.

y Contract Buying

What??

Where it is used??

Process.


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E-Auction

Advantages Disadvantagesy Increased revenues

y Optimal price setting

y Removal of

expensiveintermediaries

y Convenience

y Lower transaction

costsy Lower administrative

costs

Possibility of fraud

Limited participation

Security

Auction software

Long cycle time

Monitoring time

Order fulfillment costs

Lack of Transparency

Fake Photos andmisleading descriptions.


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Spot Buying

Advantages Disadvantages

y Up to date information

y Cost Saving

yReduces risk of being out offashion

y Customer Satisfaction

y Freedom of choice

y

Better Capital Management

y Risky

y Tarnish relationship with

suppliersy Short term vision

y Lack of clarity

y Timeliness

y

No room for negotiation


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Contract Buying

Advantages Disadvantages

y Reduces Risk

y Greater Negotiation Leverage

y Long term benefits

y Additional Perks

y On time Delivery

y Quality assurance

y Loosing out on current trend

y Pressure of Buying

y Pressure of meeting contract

rules

y Limited choice

y Risk of duplication(Single

supplier many buyer)


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Conclusion

E-auction, spot market and contract buying are all part of procurement.

Companies should adopt the one which suits the companies procurement

strategies.

Companies which gives importance to transparency adopts spotmarketing.

Urgent Items(few suppliers, high demand)

Product

Non-critical items(80% of the purchase)


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Cont

y Companies which emphasis on relationship goes for contract buying

E.g:- motorola-strong supplier relationship

Companies which wants to be benefit from their position goes for e-

auction.

Forward auction ( sell- side)

E-auction

Reverse auction (buy-side)

The trend is changing towards e-procurement.


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Cont.

Many companies are adopting the e-procurement for 3 main reasons.

a) Reduces cost

b) Easier

c) Faster

Dell, IBM and GM are the best known purchasing organization.

Strategic procurement by companies-dont want to loose on quality,

cost and relationship.

E.g IBMs private exchange program.


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Thank you.

Documents

E Auction Final