MtendersTM eAuction module allows suppliers to bid online against each other for contracts against a published specification.
This kind of environment encourages competition, with the result that goods and services are offered at their current market value.
Types of e-auction supported by MtendersTM
- English auction –English auctions are where bids are announced by either an auctioneer or the bidders, and winners pay what they bid to receive the object. The most common and straightforward form of e-auction, they’re intuitive, user-friendly and can help to reduce transaction costs.
- Classic reverse auction – Multiple sellers compete to obtain the buyer’s business. The buyer can see all the offers and may choose which they would prefer. Predominantly used for procurement.
- Dutch auction – Dutch auctions start at a high price, which is then incrementally lowered until a buyer accepts the price. The first person to bid wins the auction, which makes them good for quick decisions.
- Japanese auction – Here the buyer sets a high price which decrements at pre-set amounts at pre-set intervals e.g. £500 every 2 hours. If a supplier is happy to provide the goods and services at that price, the transaction then goes ahead.
The benefits of MtendersTM Reverse e-auctions
- Real-time Pricing;
- More Competition;
- More SMEs participation;
- Transparent and fair processes;
- Fair prices driven by competition;
- Automated and streamlined sourcing process;
- Achieving target savings.
- Real-time pricing;
- Level playing field for all suppliers;
- All suppliers can participate and compete, including SMEs;
- Fair competition for all suppliers;
- Fair prices driven by stiff competition;
- Anonymity and identity protection during the online transaction.