E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the...
Transcript of E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the...
![Page 1: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/1.jpg)
E-Auctions in Industry Reducing the procurement cycle and costs
Nick Drewe, Alun Rafique
![Page 2: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/2.jpg)
Agenda
Who? ― Marketdojo
What? (are e-Auctions)
― Definition ― History of Auctions ― History of e-Auctions ― State of play
Why? (use Reverse Auctions)
― Drivers, challenges, Benefits ― The procurement cycle
How? (example process)
The Future of e-Auction software
E-Auction Demo
![Page 3: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/3.jpg)
Who? What? Why? How? The Future of e-Auction software
![Page 4: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/4.jpg)
Who?
New UK company based in the South West, focusing on procurement “software-as-a-service” Founded by Bristol graduates with experience in engineering, consultancy, software development and procurement Currently offering e-Auction and e-Sourcing software with the following characteristics:
![Page 5: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/5.jpg)
Our Philosophy
Collaborative Transparent Agile Having fun
“Choose a job you love, and you will never have to work a day in
your life” - Confucius
![Page 6: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/6.jpg)
Who? What? Why? How? The Future of e-Auction software
![Page 7: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/7.jpg)
What? (are Reverse Auctions)
“In a forward auction buyers compete to purchase assets and the price increases over time.”
“In a reverse auction sellers compete for a contract to supply goods or services and the price decreases over time.”
![Page 8: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/8.jpg)
History of Auctions
500 BC – Babylon, it was considered illegal to allow a daughter to be sold outside of the auction method
Roman Empire – ‘Spoils of war’ auctioned with proceeds funding the war effort and used to liquidate assets
193AD - entire Roman Empire was put on the auction block by the Praetorian Guard
Auction by Candle - bids were offered in ascending order until the candle spluttered out
18th Century – Auctions held in Taverns and coffeehouses to sell art
![Page 9: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/9.jpg)
1990s – Emergence of internet-based online auction tools
1995 – FreeMarkets, founded by former McKinsey consultant and General Electric executive Glen Meakem
Dot Com Boom – Growth of many competing start-up reverse auction service providers including SAP & GM
2004 – Ariba announced its purchase of FreeMarkets for $493 million
Today – Evolution of many B2C Auctions sites from unique bids to service-based reverse auctions
History of e-Auctions
![Page 10: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/10.jpg)
E-Auction Market
Large multinationals ― Oracle, SAP/Ariba, IBM
Boutique consultancies ― TradingPartners, BravoSolutions, Red2
Tailored software vendors — Wax Digital, Curtis Fitch, Due North
Commoditised software vendors ― Market Dojo, CPOConnect, SourceDogg
Diversification
Consolidation
![Page 11: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/11.jpg)
Who? What? Why? How? The Future of e-Auction software
![Page 12: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/12.jpg)
Drivers to reduce cost
Economic pressure Global competition To increase profits Optimisation and efficiency
Can e-Auctions help?
![Page 13: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/13.jpg)
E-Auctions - Challenges
Price focused Hurts relationships Confidence Incentives
![Page 14: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/14.jpg)
E-Auctions - Benefits
Efficiency No geographical constraints Intensity of social interactions Market Price Transparent Process
![Page 15: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/15.jpg)
E-Auctions - Benefits (Supplier)
Low sales cost Instant market feedback Efficiency and transparency
![Page 16: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/16.jpg)
The Procurement cycle
Data collection Specification definition RFQ generation Supplier sourcing Negotiation strategy
Obtain initial bids and e-Auction or Negotiation preparation and face to face
Short list Discussions Finalise deal Implement
Preparation Negotiation Implementation
Requirement Renewal Manage
![Page 17: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/17.jpg)
The Procurement cycle
Prepare Negotiate Implement
Prepare Negotiate Implement
Traditional RFQ process
Typical e-Auction Process
![Page 18: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/18.jpg)
Preparation
Preparation
Preparation
Preparation for an e-Auction is generally longer than for a RFQ and face to face negotiation activity. Tight Specifications: E-Auctions encourage tight specifications as everything needs to be tied down so suppliers can negotiate just on price. Supplier Sourcing: E-Auctions facilitate negotiations with many more suppliers thus more effort might be required here. Note: Subsequent years require less time
![Page 19: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/19.jpg)
Negotiation
Negotiate
Negotiate
E-Auctions allow for extremely efficient negotiations: Price can be negotiated with multiple suppliers in a rapid timescales.
![Page 20: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/20.jpg)
Implementation
Implement
Implement The upfront preparation, and tightness of the specifications and SLA’s for an e-Auction means that the implementation should be more straightforward. However, this stage is critical and never easy.
![Page 21: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/21.jpg)
Who? What? Why? How? The Future of e-Auction software
![Page 22: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/22.jpg)
Reverse Auction process
.
.
.
.
6. Award Contract
1. Category Selection
2. RFQ Pack
3. Supplier Search
4. Qualification Bids
5. Run Auction
![Page 23: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/23.jpg)
Definition
Liquidity Scheduling
Savings potential
1. Category Selection
![Page 24: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/24.jpg)
Spend value
Service Levels ... Lot structure
2. RFQ Pack
Specifications
![Page 25: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/25.jpg)
Define Criteria
Internet / Specialists
Ask your colleagues
Referrals?
3. Supplier Search
![Page 26: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/26.jpg)
Lot structure?
Initial savings
Understood ?
Strategy
4. Qualification Bids
![Page 27: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/27.jpg)
Contingencies
Communication
Keep it short
Price Compression
5. Run Auction
![Page 28: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/28.jpg)
Feedback
Sign Contract
Signed Bids
Implementation
6. Award Contract
![Page 29: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/29.jpg)
Who? What? Why? How? The Future of e-Auction software
![Page 30: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/30.jpg)
The future
Further evolution of the software Commoditisation Added market intelligence Gamification Use of Social Media
![Page 31: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/31.jpg)
The future
Further evolution of the software cont...
Multi criteria events Personalisation Augmented reality Expansion into B2C
![Page 32: E-Auctions in Industry - CIPS Speaker Presentations... · E-Auctions in Industry Reducing the procurement cycle and costs ... What? Why? How? The Future of e-Auction software . Who?](https://reader033.fdocuments.us/reader033/viewer/2022042302/5ecd85e108aff80730132563/html5/thumbnails/32.jpg)
The e-Auction App!