E-auction is an online auction with manufacturers bidding against each other in real time to offer the best price, which will then be supplied. The manufacturer that offers the best price at the end of the bidding for a particular lot. Suppliers compete with each for their goods or services in order to win the business being offered by the companies. This online e-auction platform is lot based so users can run different auctions at the same time. Moreover users can create e-auction in four steps and prior to bid event, users can upload documents which helps suppliers to understand the bid scope. The manufacturers’ have to accept framework agreements before joining the bid event otherwise they cannot join the e-auction event. E-Auctions are becoming increasingly popular because they create a structured opportunity for companies to reduce their costs in order to win business. The main advantage of procuring through e-auction is better price that can be achieved. Not all e-auctions will generate a saving but the key benefit of running an e-auction is the opportunity to see the true market value for the goods or services.
Last updated 20 Feb 2015