With QAD Allocation Auctions you can determine the optimal market prices in the shortest possible time. The negotiation module helps you to get the best out of the negotiation situation. With QAD Allocation you can conduct your own auctions or let our experts manage your auctions.

QAD Allocation Auctions

“We have achieved 13% savings on cost prices through QAD Allocation Auctions.“Günter Reider, Purchasing Management, Teufelberger

With QAD Allocation Auctions you determine the optimal market prices in the shortest possible time.

Benefit from our many years of experience as a service provider for well-known companies: As an external specialist, we take over the handling of your auction from A to Z and help you to make the best possible and targeted use of auctions in purchasing. With QAD Allocation you have an experienced and strong partner for your full-service auctions at your side.

With our possibilities not only simple and standardizable goods and services are suitable for auctions: Production material, capital goods, indirect materials and services are common procurement objects that are negotiated in auctions. Optionally, you are also able to display awards of contract.

Modules in Auctions

An auction can be started at any time as a final form of negotiation from a tender.

After a successful auction, the prices achieved can be transferred back into the tender format. The advantage for you is that the entire tendering process – from the notification of requirements, specification and invitation to tender to the auction and subsequent contract award – is documented in a single tender file.

Whether single-price auctions or complex structures: QAD Allocation completely reflects your individual ideas.

Thanks to the flexible template design, all doors are open to you for successful auctions. QAD Allocation takes into account bonus/malus rules, internal calculations or exchange rates – all in a live auction, fully automatically.

In the Japanese auction, the buyer sets a starting price, which decreases during the duration of the auction. The seller or supplier must confirm that they are willing to sell for this price at each automatic price step down. If only one supplier is willing to deliver for a current price, that supplier is awarded the contract.

In the Dutch/Dutch ticker auction, the buyer sets a low price, which automatically increases periodically during the auction period. The supplier who agrees to a price is awarded the contract and the auction ends.


  • For one price item per auction
  • Ticker steps determined by the purchasing department
  • No transparency for suppliers
  • Only one bid per auction: The winner ends the auction immediately

The English Forward Auction is also often referred to as the “Ebay Auction”. A seller offers his products and in the ideal case many buyers bid on the product. The bidder with the highest price wins.

The English reverse auction is the reverse “Ebay auction”. The purchasing company specifies its requirements and auctions them among several competing suppliers. Starting from a customer-side entry price, these suppliers underbid each other until the tendering phase ends in a defined manner.


  • Most common auction type
  • For one or more values
  • Transparency on input fields or calculated results
  • Competition is achieved through the chosen transparency
  • Good information about individual price limits per participant

Depending on the auction type, the following options are available to increase transparency for the bidder:

traffic light

  • Position in the participant field in the form of the traffic light colours: green – yellow – red
  • Individual definition of the bandwidths per traffic light colour
  • Pre-qualification for further negotiation steps (also combinatorial auction)
  • The consequences of the traffic light colours are formulated in the award rule


  • Shows the participant his position in the competition with a rank
  • The minimum step size / check is related to the last own offer per supplier
  • Identical offer values can optionally be evaluated according to their time of receipt

Best price

  • Participants can see the price of the best offer
  • The minimum step width/check is related to the best bid
  • Suitable in case of low spread or good estimation of the bidding behaviour of the participants (danger of missing dynamics)
  • Publication of the actual award value for all participants

Reservation price

  • Target price can be linked to the award rule
  • Examples of reservation prices: Internal production costs, target prices (budgets)
  • The amount of the reservation price is not communicated to the suppliers
  • Reaching the reservation price triggers the following message to all participants: “The reservation price has been reached.
  • Consequence is formulated in the allocation rule

Thanks to the flexible auction creation with the QAD Allocation Auction Module, you can conduct complex, interlocking cost-breakdown auctions.

Comparability – implementation of bonus/malus in auctions

  • The stored bonus/malus is not visible for the suppliers in the system
  • The participant only receives the display of the “adjusted” rank
  • Bonus/malus can be specified as an absolute or relative value

Example “absolute” malus:

QAD Allocation offers you optimal transparency in the auction process at any time, you have all important aspects at a glance. In the auction cockpit, the results are calculated and visualised in real time. You can choose between result overviews and graphics.

Your benefit:

  • Optimal market prices in the shortest time
  • Excellent cost-benefit ratio
  • Acceleration of negotiation processes
  • Simple operation
  • Absolute flexibility
  • Transparent, compliance-compliant awarding
  • Take advantage of our expert knowledge and build up internal know-how with full-service auctions

Auctions at a glance:

  • English-Reverse
  • Dutch ticker auction with Silver and Golden Goal
  • Japanese ticker auction
  • English Forward Auctions (sales auctions)
  • Any price queries in matrix structure (e.g. TCO)
  • Information request (e.g. commercial framework conditions)
  • Transparency in the form of rank, best price, traffic light
  • Absolute and relative weightings (bonus, malus)
  • Multi-currency auctions
  • Consideration of target prices
  • Confirmation of conditions of participation
  • Log of all process steps and auction progress
  • Export of all offers and protocols in xls format

More QAD Allocation modules:

Savings of over 10%(Source: Study on electronic procurement, BME, Universität Würzburg, HTWK Leipzig 2015)
Auctions En
Persönliche Beratung Meik Richter Head of Sales Allocation-Meik-Richter-Sales-Vertrieb.png Allocation Mitarbeiter

Meik Richter
(Head of Sales)

Inquire now and ask for advice:

Tel.: +49 (0) 89 2782 57-0
E-Mail: vertrieb@allocation.net

Contact us

Your contact person: Meik Richter Head of Sales

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