Introduction:
Preparing well for an Auction is key to helping to ensure a successful Auction. The following is a brief checklist that may be used to help you prepare for and build an Auction in SAP Sourcing.
Building an Auction:
There are several tabs on the Auction that need to be populated with information when you build your Auction. It is important to review the information in each tab to ensure that it is correct and complete:
The steps provided below are intended to help you gather the information required to do this.
Collect Spend Data for the Auction Category:
This includes current and target baseline pricing against which to measure savings and performance to your goals.
Determine What Information You Will Disclose to Provide Feedback to the Suppliers During the Auction:
When you are building your Auction in the system, you will want to choose the type of Auction based on the information
you have decided to disclose:
A primary goal of the feedback strategy in an Auction is achieve market pricing.
Identify Internal Stakeholders to be Added as Collaborators to the Auction:
Note that collaborators must be created as users in the system before you are able to add them as collaborators
to an Auction.
Establish the Date and Time of the Auction:
You will want to allow enough time for suppliers to prepare and to conduct training and a Mock Auction if you decide to
provide training and / or do a Mock Auction:
Determine How Long Each of the Phases Will Run:
There are several phases involved in an Auction. Depending upon the nature of a particular Auction, time allotted for
each phase may vary:
Determine When to Have Time Extensions Added to the Close Time of the Auction:
It is common for the Inactivity Window and Overtime Duration to be set to either 2 minutes or 5 minutes each. However, this should be set to what makes sense for a particular Aucdtion. Typically, there is significant bid activity within the last minutes of an Auction.
Identify any Information that You Want to Provide to the Suppliers, including File Attachments:
Identify the Specific Goods and Services that will be Added as Line Items on which the Suppliers will be Placing Bids:
At minimum, for each line item, you will want to identify the following pieces of information:
For measurement purposes, you should also include:
Optionally, if you have enabled these fields, you can include:
Identify Incumbent Suppliers and Potential (Qualified) Suppliers to be Invited to Participate in the Auction:
Note that suppliers and the associated contacts must be created in the system in order to invite them to an Auction.
Identify the key contact at each supplier that will place bids on the day of the Auction:
At minimum the following details for each contact are important:
Ensure that each contact for each supplier is created in the system so that they have a user id and password to access
the Auction at the specified time.
In addition, you might want to consider running a Mock Auction to prepare the suppliers. Some reasons to consider a Mock Auction are:
If you choose to run a Mock Auction, generally, you will want to schedule it just a day or two prior to the actual Auction so that the experience is fresh in the minds of the suppliers.
Determine the Auction Event Terms, if any, that Suppliers Must Accept Prior to Accessing the Auction:
The terms may include statements about confidentiality and how suppliers may or may not use the information provided in the Auction.
Review Auction Tabs for Completeness:
At this point, you are ready to conduct your Auction. The next step is to run the live Auction according to the schedule. Once you run the Auction, you will want to do an analysis to determine what worked well and what might be improved for the next time.
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