ASTRAS e-auctions: optimum market prices in the shortest possible time
Tier, ranking, or price auction, Dutch or Japanese: with ASTRAS e-auctions, you can even map unusual and complex formats. ASTRAS offers you maximum flexibility with ease of use. With ASTRAS, you can design your auctions to achieve the best possible results by completely harmonizing the design of the auction with the negotiation situation and award strategy.
The ASTRAS e-auction engine
Auctions allow you to determine the optimum market prices in the shortest possible time. The system offers you a uniquefull-service auction with Allocation Network
You can, of course, use ASTRAS to run your own auctions. Alternatively, however, as part of our full-service offer, you can make use of our experts’ support for your auctions.
Benefit from our many years of experience as a service provider for well-known companies: as an external specialist, we will manage your auction from start to finish and help you make optimum and productive use of auctions in purchasing. With Allocation Network, you have an experienced and strong partner at your side for your full-service auctions.
Our options mean that it is not just simple and standardized goods and services that are suitable for auctions: production material, investment goods, and indirect materials and services are standard procurement items that are negotiated in auctions. You also have the option to map binding awards. Just ask us a question with no obligation – we will be happy to advise you.
an auction can be started as a final form of negotiation at any time from an RFQ.
After an auction has been successfully completed, the prices achieved can be transferred into the RFQ. The benefits for you: The complete RFQ process, from purchase requisition to specification, requests for quotations, auction and subsequent procurement, is documented in a single tender document.
Whether it be single-price auctions or complex structures, ASTRAS fully maps your individual concepts.
The flexible template design ensures all doors remain open to you for running an auction successfully. ASTRAS takes account of bonus/malus rules, internal calculations or exchange rates, all fully automatically within a live auction.
The Japanese ticker auction is a highest price auction. The difference is that a bidder can only bid the highest price once. If a buyer’s price threshold is exceeded, s/he drops out of the auction and may not come back in. This process is repeated until there is just one bidder left.
In the Dutch ticker auction, the seller offers an asking price and at the same time specifies a starting price. The price now decreases during the time that the auction is running, i.e. the sales price for the item reduces as time passes. The first interested buyer that makes a bid is accepted at the current price. Thus, the longer the interested buyers hold back, the lower the price. In contrast to a conventional auction, an item may be sold soon after the start of a reverse auction, as the interested buyers exert time pressure on each other. If the bid is made tactically late, the item may possibly be sold to another bidder.
- For one price position per auction
- Upwards bid direction, ticker steps set from purchase
- No transparency for suppliers
- Only one bid per auction: the winner terminates the auction immediately
The English forward auction can also be described as an “eBay auction”. A seller offers their product for sale and ideally several bidders bid for the product. The bidder offering the highest price wins.
The English reverse auction is the opposite of an “eBay auction”. The buying organization specifies its requirement and auctions it to several competing suppliers. These underbid each other, starting at the customer’s maximum price, until the specified bidding phase ends.
- Most popular type of auction
- For one or more values
- Transparency on input fields or calculated outputs
- Competition is achieved by means of selected transparency
- Good information on individual lower price limits for each participant
Depending on the auction type, the following options are available to increase transparency for the bidder:
- Position in the participant field in the form of a tier: green – amber – red
- Individual definition of bandwidths for each colored tier
- Reclassification for further negotiation steps (also combination auction)
- The consequence of the tier color is specified in the rules for award
- Shows the participant their position in the competition with a ranking
- Minimum increment / review with regard to the last offer for each supplier
- As an option, equal bid values can be evaluated according to the time of receipt
- Participants can see the price of the best bid
- Minimum increment/review with regard to the best bid
- Ideal for a limited spread or a good estimate of participants’ bidding behavior (risk of lack of momentum)
- Get to know the actual award value for all participants
- Target price that can be linked with the rules for award
- Examples of reservation price: internal production costs, target prices (budget)
- The reservation price is not communicated to suppliers
- If the reservation price is reached, it triggers a notification to all participants: “The reservation price has been reached!”
- The consequence is specified in the rules for award
Flexible auction creation made possible by the ASTRAS auction module enables you to run complex interformulated cost breakdown auctions.
Comparability– implementation of bonus/malus in auctions
- Suppliers cannot see the bonus-malus recorded in the system
- The participant only sees the display of the “adjusted” range
- Bonus/malus can be specified as an absolute value and also as a relative value as a percentage
Example: “Absolute malus”
ASTRAS offers perfect transparency at all stages of the auction process; you can monitor all the important aspects. The results are calculated and displayed for you in real time in the auction cockpit, where you can choose from a range of views and charts.
- Optimum market prices in the shortest possible time
- Excellent costs-benefit ratio
- Accelerated negotiation process
- Simple operation
- Complete flexibility
- Transparent, compliant awards
- Use our expertise and build knowledge within your company with full-service auctions
An overview of the modules:
- English reverse
- Dutch ticker auction with silver and golden goal
- Japanese ticker auction
- English forward auctions (sales auctions)
- Any price requests in a grid structure (e.g. TCO)
- Request for information (e.g. commercial framework)
- Transparency in the form of a ranking, best price, or tier system
- Absolute and relative weightings (bonus, malus)
- Multi-currency auctions
- Consideration of target prices
- Confirmation of participation conditions
- Log of all process steps and auction progress
- Export of all quotes and logs in xls format