Streamlining Reverse Bidding Auctions
Client Overview
Headquartered in Singapore and listed on the SGX-ST, this client ranks among the top 30 largest companies by market capitalization and is a Fortune Global 500 company. This leading food and agri-business serves over 19,800 customers worldwide with a diverse portfolio of ingredient products.
Key Challenges
The client faced several challenges with their reverse bidding auctions, managed by SAP Ariba, an enterprise tool:
Suppliers participating in the bid found it challenging to use.
Suppliers were from remote regions in Africa where connectivity was a major issue.
Bids were not updated in real-time.
Strategic Solutions
To address these challenges, the following solutions were implemented:
Reverse E-Auctions: Implemented reverse e-auctions where suppliers submit online bids to compete against each other. In reverse auctions, bidding starts with the highest possible price and decreases gradually until the lowest bid wins.
Live Bid Console: Introduced a live bid console to display real-time bids.
Achieved Benefits
These solutions resulted in significant benefits:
Enhanced Product Efficiency: Ensured bidders could participate despite geographical boundaries.
Streamlined Sourcing Route: Simplified and improved the sourcing process.
Transparency in Bids: Reduced underhand dealings, promoting transparency.
Time-Saving for Buyers: Buyers no longer needed to send requests to different sellers one by one, saving valuable time.