Accounting for true TCO/TVO across a range of input factors is not a simple task without the right toolset.
Our customers asked us for a better method to buy direct parts and materials.
Auctions are shown to be the most effective negotiation technique for items that are highly engineered and clearly specified; however, ‘effective’ dictates ensuring that all bids are compared equally, and that the outcome is beneficial for both parties.
Accounting for true TCO/TVO across a range of input factors (whether relating to onboarding the supplier for a particular engagement or whether affected by the part/material production, delivery limitations, or risk factors), is not a simple task without the right toolset.
We introduced ASTRAS’ auction capabilities in 2000 - less than 5 years after the first online forward auction tool, OnSale, became commercially viable. The reasoning: Our customers asked us for a better method to buy direct parts and materials.
4 Must Haves
Having full insight and control of the 4 “must haves”, our customers are equipped to ensure successful auctions.
Because success isn’t solely determined by price, payment terms and quality, but by also considering the supplier’s own interests, whether utilization of production, predictability or other.
Ease of Set up
Track against target objective
Absolute and relative weighting (bonus/malus)
Transfer from eRFx
Roles and authorizations
Full export to Excel
Purchasing team activity
Live feedback (e.g., traffic lights, ranks, best price, reservation price, etc.)
Timing and demand
‘Features’ do not paint a whole picture. Hear from Stephanie Spiegel, Head of Technical Solution Engineering at Allocation, on her thoughts regarding our auction capabilities…
Head of Technical Solution Engineering at Allocation
What is your favorite feature of ASTRAS’ auction functionality and why?
“The options showing a supplier their position relative to their competitors. For example, you can make a small English reverse auction with just one price and showing the ranking. Very simple. On the other hand, you can have an auction with a detailed cost breakdown, and 20+ positions, to show a ranking, traffic light or best price in any combination, thereby putting pressure on the suppliers to perform better in certain parts of their quote. Whether ‘quick and dirty’ or ‘super complicated’, I haven’t found an awarding situation we don’t have a possible auction design for.”
Tell us an interesting ASTRAS’ auction story?
“We have the benefit of seeing the inside of many companies, and be a part of so many interesting situations.
Increase market efficiency
Increase process efficiency