eAuction Types

	Reverse English		Reverse Clock
	Multi-Directional		Weighted		Multi-Attribute

TradingPartners leverages market trends, category knowledge and supplier information to know which strategy will produce the most successful results for each unique category. Selecting the right eAuction type is intrinsically linked to savings and success. Factors affecting the decision making process can be anything from the current cost of commodities, the number of participating suppliers or a necessary rebate inclusion. Whatever it may be, TradingPartners has the proficiency to guide companies through all available options, using current market knowledge and historical data, to make the right choice and design a tailored eAuction solution.

Reverse English eAuction

The Reverse English eAuction is the most commonly used eAuction type. Suppliers submit decreasing price bids until no further bids are received.  In this format, each supplier is aware of the best bid (i.e. lowest bid) and/or their ranking compared to their competitors. TradingPartners recommends Reverse English eAuctions when there is a healthy number of participating suppliers and open competition will deliver the best result.

Reverse Clock eAuction

In a Reverse Clock eAuction (also referred to as Reverse Japanese) the Client is in control of the price decrements, and suppliers accept or decline at each price level. It is a straight forward and fast paced eAuction for both suppliers and Clients.

Multi-Directional eAuction

In a Multi-Directional eAuction the supplier bids downward on certain items and upward on others. For example, a supplier might negotiate the item price downward and negotiate a rebate percentage upward (e.g. to help with promotional or advertising costs). TradingPartners recommends Multi-Directional eAuctions when the Client wants to take into account any cash back, rebate, or other value-adds they may receive from a participating supplier. 

Weighted eAuction

With this method, suppliers are scored according to non-price factors, such as quality, location, ISO certification or delivery terms. The supplier’s overall position in the eAuction is adjusted according to a combination of both price and non-price factors. Suppliers cannot modify any non-price attributes. TradingPartners recommends Weighted eAuctions when there are significant differences in non-negotiable criteria among suppliers, and these differences affect the Clients' preferences (i.e. the Client is prepared to pay more for a higher-quality offering).

Multi-Attribute eAuction

As with weighted eAuctions, suppliers are rated on both their price and non-price factors.  However, in a multi-attribute eAuction, suppliers are allowed to modify non-price factors during the eAuction. For example, they might shorten lead times in order to improve their overall position. TradingPartners recommends Multi-Attribute eAuctions when the Client is prepared to negotiate on certain non-price criteria.