An Overview of Electronic Auctions (eAuction)
eProcurement Scotland (ePS) provides access to electronic auction (eAuction) functionality through the eSourcing Scotland system. This system is an element of the "core" ePS service and is available to any buying organisation participating in the programme.
What is an eAuction?
An eAuction is an electronic "reverse" auction where suppliers use internet-based software to bid against each other online and in real time against a published specification.
eAuctions can be based on price alone or can use transformational bidding to account for other criteria such as quality and delivery.
When to use eAuction
eAuctions are most often used in the final stages of the procurement where all "non-price" factors (e.g. quality evaluation and terms and conditions have already been agreed.
eAuction work best where:
- the requirement is of sufficient size to attract competition
- the requirement can be accurately specified
- there is a competitive market
Potential benefits from eAuctions include:
- cost savings
- time savings - an eAuction can shorten the often lengthy end-stage price negotiations
- ability to open up procurement to a wider market allowing suppliers to make bids without being restricted by geographic location
- transparency of process to all participants; and
- an electronic audit trail of activity
Programme Support & Advice
The Programme Office provides support to buying organisations using the eAuction service through the eSourcing Scotland system, producing detailed guidance, advising on best practice and facilitating collaborative involvement in eAuctions amongst user organisations.
Training, coaching and on-line system documentation is provided for all users of eSourcing Scotland. Helpdesks are also available supporting both technical and non-technical queries.
Download a pdf version here
eAuction case studies can be accessed here