e-Procurement F.A.Q

1.What is an e-auction?
Other terms used to describe e-auctions: Buyer auctions, Reverse auctions, online biding, biding event, internet auction, commercial auctions...

An e-auction is a tried and tested sourcing method that has many advantages over the traditional RFQ process. It is known to save significant time and reduce the purchase price on most goods and services.

A ProLogic reverse auction enable companies to define what product or Service they want and then receive on-line and real-time bids from sellers for the best price and terms available on the market.

For Buyers, e-auctions or reverse auctions are a dynamic and real-time medium for setting purchasing terms that meet individual needs, creating custom product specifications, and obtaining competitive Bids that meet or exceed Buyer criteria.

The e-auction event is conducted on-line with pre-qualified suppliers being invited to compete on predetermined and published award criteria.

Once the reverse auction is finished the buyer can review the supplier's bids, the lowest bid does not necessarily win; today's auction technology enables the buyer and suppliers to take into account many non-price factors. Basically, we can "weight" the auction if necessary!

The e-auction system enables you to access your suppliers' bid responses more fairly and accurately

Suppliers, like it because in traditional auctions bids are normally sealed, by contrast suppliers can alter their bids during an online auction increasing their chances of winning the contract.

Suppliers also like e-auctions because they are much more transparent and ensure everyone is on a equal footing!  [ Top ]
2. What service does Prologic e-Procurement offer?
Prologic e-Procurement service includes fully managing and hosting e-auctions live on the internet.

We aid in assessing the spend within your organisation suitable for online bidding.

We provide complete training and educational resources for both buyer and supplier online, backed by ad hoc services as required.
We also monitor the online event on the day and provide technical support to the suppliers were necessary.
This ensures that the e-auction runs smoothly and without hitches, we also offer full analyse post auction allowing non-monetary valves to be accounted for.

ProLogic will assist in sourcing suppliers if required or you can use our extensive list of existing suppliers however the customer makes the final sourcing decisions and approves each stage of the process.

ProLogic assists with post event analysis.  [ Top ]
3. Can Prologic eProcurement assist in sourcing?
If necessary, ProLogic will suggest suppliers in our database which the customer may want to consider inviting to the e-auction (or we can source totally new suppliers).

Of course there will be preferred suppliers, this may because of location, quality, reliability, etc. But the customer must consider the fact that
more suppliers will help increase competition.  [ Top ]
4. Is there bid evaluation?
Yes, ProLogic proves that it is very important to conduct post auction evaluation, as the supplier with the lowest bid may not always win the tender, it is very important to consider non monetary values.  [ Top ]
5. Which companies does this suit?
eAuctions are increasingly being adopted by major players in industry and in the public sector. eAuctions are firmly built into the procurement strategies of many private sector companies to source direct materials, products and services and support services.

If you are buying a Product or service in large volumes it will suit YOU!  [ Top ]
6. When and where are e-auctions suitable?
You can purchase just about any product or service in the world!

As soon as you have identified a requirement or registered that a contract is coming up for renewal you need to start planning your Reverse eAuction as part of your procurement.

Most procurements that are of sufficient value to attract competition, with a requirement that can be accurately specified and for which there is a competitive market can be suitable for a Reverse eAuction.  [ Top ]
7. Are eAuctions compliant with the EU Directives?
The correct use of eAuctions is entirely compliant with both current legislation and the new EU public procurement legislative package, which specifically features eAuctions. The EU favours the use of eAuctions because of their transparency and strong competitive element.

The inclusion of a specific article on reverse auctions in the new EU public procurement legislative package indicates that they are here to stay. This is supported by the EU's enthusiasm for eAuctions in public procurement because of their transparency and the strong competitive element.  [ Top ]
8. How do you get started?
Contact us at eprocurement@prologic.ie and we will give you a free consultation, and evaluate the benefit a reverse auction will bring for you.  [ Top ]
9. What are the timescales for setting up an e-auction?
Approximately 1 month depends on how detailed the RFQ is, ultimately the Buyer determines the length of the Reverse eAuction.  [ Top ]
10. Who needs to be involved?
Procurement managers and financial director, decision makers in the company.  [ Top ]
11. What happens after the event?
A report will be sent out to buyer giving detail history of all bids made during the reverse auction, from that the decision will be made on which supplier will win the tender.  [ Top ]
12. Are there any set-up charges?
No, ProLogic prefer to run on a no savings no charge fee. ProLogic take a percentage of the savings, meaning that the client is only charged if money is saved.  [ Top ]
13. Do we or the suppliers' need to purchase any software or hardware?
The reverse auction is hosted on a secure website, hence to be involved in an e-auction with Prologic all you need is an internet connection.  [ Top ]
14. How secure are e-auctions?
Prologic host their e-procurement website on a secure dedicated server. All transmitted data is encrypted using SSL. The latest security updates are regularly applied.

Any further questions regarding security should be forwarded to ProLogic I.T security department contact: kevin@prologic.ie  [ Top ]
15. Are e-Auctions specifically about forcing down prices?
An e-Auction does offer the buyer the opportunity to arrive either at or close to the true market price in an efficient and transparent way, but does not encourage suppliers to submit bids at unsustainable levels.

It's a little known fact that e-auctions have also statistically proven to be very successful at increasing supplier performance! (Bristol school of business!)  [ Top ]
16. What are the benefits?
  • Saves Money (Saves procurement costs)
  • Increased transparency & Honesty
  • Saves Time
  • Improves Regulatory Compliance
  • Accessible and Easy to Use
  • Increases Small Business Utilization
  • Stretches Budgets
  • Improves Awareness of Opportunities
  • Improves Competitive Process
  • Lower Sales Costs [ Top ]
17. Why should I be interested?

You should be interested if:
  • you want to save money,
  • increase supplier performance,
  • increase profitability,
  • step ahead of your competitors.  [ Top ]
18. Why is now the right time?
e-Auctions are rapidly growing in popularity within purchasing organisations. The combination of increased efficiency, improved project visibility and more competitive pricing from their suppliers is rapidly making e-Auctions a standard tool in the purchasing professionals' toolbox. e-Auctions tend to be less appealing to suppliers participating in them because of the effectiveness of the tool in negotiating lower prices. There is no doubt that reverse auctions or e-Auctions do swing the balance of power towards the buyer.

Why should you start using our e-Auction facility NOW - Contemporary tenders are the norm at present - It has been proven that the e-Auction (reverse auction) scenario can work to save the buyer vast sums of purchasing spend - In a few years this new facility will become the norm therefore the savings will be spread across all companies as each organisation is both a Buyer and a Supplier...Therefore, its the buyer companies who adopt this new e-Auction technology for their suppliers NOW that will reap the rewards as eventually their rewards will diminish as they too will be forced to compete via e-auctions as a supplier themselves!

You should partner with Prologic e-Procurement because of our technical expertise and our unique methodology... i.e. our fee is based purely on the amount you save so we are as committed to the success of any e-Auction event as our clients.  [ Top ]
19. Do auctions take the purchasing decisions out of the hands of the buyer?
Certainly not – in fact they empower the buyers even more.  [ Top ]
20. Where can I get more information on Reverse Auctions?
Please contact ProLogic e-Procurement at eprocurement@prologic.ie or ring 0044(0)2887724864 [ Top ]
21. Definitions:

Bid means an accurate, good faith offer to sell, at a certain price and during a certain period of time, Commercial Items that conform to the Specifications in response to which such offer is submitted. A Bid must be received through the Web Site prior to the expiration of the Reverse eAuction and as determined by the Web Site system clock.

Bid Decrement means the bidding requirement, as established by the Buyer for, which dictates the minimum reduction in price between a Bid and the subsequent re-Bid submitted by a specific Seller.

LEAD means that a Bid is in the lead position at a specific moment in time during the Reverse eAuction process.

LAG means that a Bid is NOT in the lead position at a specific moment in time during the Reverse eAuction process and that it may be lagging to competitor bids.

LEAD - Pending Selection means that a Bid is in the lead position once the Reverse eAuction process has ended, but is awaiting the Buyer's award or cancellation decision.

LAG - Pending Selection means that a Bid is NOT in the lead position once the Reverse eAuction process has ended; and that it may be lagging to competitor bids but is awaiting the Buyer's award or cancellation decision.

Reverse eAuction (or Auction) means a web-based auction process that allows Buyers to solicit and collect Bids from Sellers for Commercial Items in real-time by posting requirements and receiving decreasing incremental Bids from Sellers.  [ Top ]



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