Reverse Auction How to Create

Transcription

1 Reverse Auction How to Create To create any RFx (RFI, RFQ, RFP, Auction or Buyer Survey), from the View and Manage RFx(s) page, click on the Create RFx button. Follow the steps below to create a Reverse Auction: 1. From the top toolbar, go to RFx(s) Create New RFx Or, from the View and Manage RFx(s) page, click the Create RFx button 2. In the pop-up window, click the Create New RFx button. The There are several ways to create a new reverse auction in this system: Create New RFx - Use this button to create an RFI from scratch. Create From Template This allows you to build an RFI from a previously developed RFI. Create From Import This uses a previous RFI that can be imported into your system. Create Auction from RFQ/RFP The data from the RFP or RFQ is transferred to the Auction event. This includes the suppliers lowest bids, which become the suppliers opening bids. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 1

2 Define Basic Information 1. Select the event Type of Reverse Auction from the drop-down list. 2. An additional field for Style appears. Choose English or Dutch. We will select English. 3. Enter the Name for the Event. This should be something recognizable by your suppliers. The name is used in most correspondence about the event. 4. Enter a Unique ID. This value is used by the system to store and retrieve the event information. It must be unique from all other events of any type. 5. Enter a brief Description. This is displayed when a supplier or other team member requests additional information about the event. 6. (Optional) Enter the internal Business Unit associated with the event. 7. Enter the Currency Decimal Places. This will apply to ALL currencies that are part of the event. It is also used during the entry of values, not during conversion calculations between currencies. 8. Identify if this event is For Test Use. (See the note below for an example and explanation). 9. Use Search or the link to select a Category to be associated with the event. This can be used for reporting. 10. Click Save to create the event. The Basic Information dialog box is displayed along with the Reverse Auction Wizard menu. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 2

3 Define Basic Information, continued When using the For Test Use option, events may be launched to test the setting and details. Clicking the No radio button will eliminate these from the reports. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 3

4 Reverse Auction Wizard Menu The Reverse Auction Wizard lists the steps that are executed to create the event. The steps will guide you through the process for creating the Auction event. Your current position in the list is highlighted. You can collapse and expand the list by clicking the Show All/Basic Steps option at the top of the list. Note: Items that are grayed out cannot be accessed until other information is defined. For example, when you initially create the event, the Schedule item is gray. You cannot schedule the event until all of the prerequisite information is created. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 4

5 Set Currency Options SourcePass supports multiple currencies. The event host chooses a primary currency and other currencies for the event. Currency values are displayed to buyers and suppliers in the primary currency of the event. A buyer can specify one or more currencies in which a supplier can make a bid. If the buyer specifies more than one currency, the supplier will be able to select the currency from a drop down list. The bidding currencies need to be defined and the exchange rates established. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 5

6 Set Currency Options, continued To set currency values: 1. Click the Bidding Currencies item. The Manage Available Currencies dialog box is displayed. 2. Click the Currency item on the left side list. The item is highlighted. 3. Click the Right Arrow button to add the highlighted currency to the event. The currency is displayed in the Selected Items list on the right. 4. Continue selecting currencies that can be used within the event. 5. The primary currency is listed at the top of the screen. To change it, select another currency and click the Set Selected as Primary button. 6. Click Save when done. 7. If you selected multiple currencies, click Next to establish the exchange rates for the event. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 6

7 Set Currency Options, continued Currency conversion is done from the available currency to the primary currency. The event host must establish the conversion or exchange rates. To set currency values (continued): 8. Click Exchange Rates from the left side Wizard menu. The Manage Exchange Rate dialog box is displayed. 9. The system maintains Exchange Rate tables that can be used for establishing the values for the event. Click Select - the Currency Tables dialog box is displayed. The exchange rates usually have expiration dates. The table manages these using the Effective Dates and Valid Until dates. 10. Click the checkbox for the table to be used. (Scroll to display all available tables.) 11. Click the Select Currency Table button. The verification dialog box is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 7

8 Set Currency Options, continued 12. Click OK to verify that the selected table should be used. The table values for the specific event currencies are added to the Exchange Rate dialog box. 13. Verify that the exchange rates are appropriate. 14. To override the table values, type a new value in the currency field. 15. Click Save when done. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 8

9 Define Bidding Rules In an auction, the host can establish the bidding rules and configuration options for how the auction operates. For example, there are rules that the host can set for dealing with tie-breakers when multiple bidding organizations bid the same amount, for what information will be displayed to the suppliers, and for closing each item at a staggered pace to increase competition among suppliers and more. The rules that govern how the auction operates include: Minimum Change Enable Proxy Bidding Allow Tie-breakers Bids and Bid Information Shown to Supplier Grace Periods and Auction Extension Guidelines Enable Bid Transformation Enable Item Sets Allow Partial Quantity Bidding Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 9

10 Define Bidding Rules, continued Enter the following information to define the Bidding Rules: Stagger at: Allows the buyer to specify if suppliers should bid on individual items, lots, or all items in an event. For items and lots, the event will close on a single item or lot and then open the next item or lot for bidding. This will continue until all items or lots in the event have been opened and bids received. Extend Auction if a new bid is: Allows the buyer to specify at an event level how they would like to extend the auction. The buyer can choose to extend the event if, during the grace period, a new bid is Any Bid, the Leading Bid, one of Top 2 Bids, Top 3 Bids, etc. Buyers can choose depending on the intensity of the competition and the number of suppliers they want to award. For example, if the buyer plans to award to 2 suppliers, they may want to extend the auction if a new bid is one of the Top 2 Bids. Grace Period and Extension Time: The amount of time within which the system will generate an extension if a bid is submitted. The Grace Period is calculated from the time that set off the extension. Suppose, for example, a Grace Period of 5 minutes and an Extension Time of 5 minutes are defined for an auction that will close at 3:00 pm. If a bid is submitted at 2:53 pm, nothing happens. If a bid is placed at 2:58, the auction is extended to 3:03 (2:58 plus 5 minutes). Note: Auction extensions are driven by the auction guidelines defined above. Minimum Bid Change: Suggest the next value for suppliers. When the supplier uses the Take the Lead option, the system reads the current lowest bid and creates the next lower bid at a certain amount or % lower than that bid. If the supplier uses the Minimum Change button, their bid will be the amount or percentage less than their last bid. Attachment Rules: Defines where suppliers can attach files. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 10

11 Define Bidding Rules, continued Bids Shown to Supplier: Own bid + The suppliers will see their own bid and either No other Bids, All other bids, the Leading Bid, the next Lowest Bid, the next Lowest Bid and the Leading Bid. The varying levels of configuration allow for displaying only bids to suppliers that really matter (for example, Leading or Next Lowest Bid). Bid Information Shown to Supplier: Allows host to decide what suppliers can view. o o o o o o o Show Price and Rank: Suppliers see prices submitted by other suppliers and their ranking within the event, lot, or item level. Show Rank Only: Suppliers only see where they rank among the other suppliers. Note: In a Rank Only auction, the Take Lead button is not available to suppliers. Price Only: Suppliers only see their bid price among the other suppliers. This option works with the option for the suppliers to see all bids. Show Best/Not Best: Suppliers only see if their bid is the Best or Not Best. Price and Best/Not Best: Suppliers see whether their bid is the Best or Not Best among other suppliers bid along with the supplier s price. Optimized Quantity Winning Only: Supplier will see the quantity allocated by optimization for all bids visible to them at the designated level(s). System would display the quantity that a supplier would be winning for the last submitted bid. If bundle bidding is to be enabled, then this option should be selected. Optimized Quantity Winning with Price: Supplier will see the Price per Unit and Quantity Allocated by optimization for all bids visible to them at the designated level(s). Based on the last bid submitted, supplier would see item quantity and price. Show Feedback at the Following Levels use checkboxes to set at Event, Lot or Item level Best Bid Information Shown Based on o o Best Cost Outcome the info is displayed based on cherry picking individual items. Single Source at every level the info is displayed based on a single source providing all of the items. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 11

12 Define Bidding Rules, continued Bid Cushion Limits: Protects the leading bidder by requiring a new bid to meet or exceed the set limits. Allow Proxy Bids: Allows the supplier to define the parameters to automatically generate a bid for the supplier, based on the proxy bid configuration. When triggered by a lower bid by another supplier, the proxy bid function will then create and submit the proxy bid. This function is only available in auctions and works off the Minimum Bid Change configuration. Allow Ties in Leading Bids: Suppliers with equal bids on the same line item or service are allowed to have the same ranking. It would be to the discretion of the buyer to determine how to award the auction and to which supplier. If not enabled, the supplier who s bid came in first (Time Stamp) would be the top ranked supplier. Enable Bid Transformation: Allows the host to add performance or cost multipliers and adders to a supplier's bid without the supplier seeing them. The host has the option to define the transformation parameters to effect the entire auction or at the item level. Although they are 'hidden' these factors affect the bid price as well as the price the supplier needs to beat to take the lead. If the host has enabled the suppliers to see pricing, suppliers will see the net results from other suppliers transformed bid when bids are being transformed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 12

13 Define Bidding Rules, continued Enable Item Sets: Auctions only support the All or None set. Enabling this option allows the host to create All or None sets within the Auction. Substitution sets are not supported. Enable Supplier Business Volume Discounts: Enable the supplier to offer a Business Volume Discount (based on money). Allow Partial Quantity Bidding: Allows suppliers to bid less than the minimum desired quantity. This is typically used to accommodate suppliers that are constrained by quantity demands. Allow Discount Bidding: Supplier can bid as a percentage off of an index value. Note: In addition, each individual item must have this enabled. Enable Bundled Bidding: Supplier is able to bundle items in the event to offer a discount. Enable Notifications for this event: Allows notifications to be sent for the event. 1. Select setting to define the bidding rules for the event. 2. When finished, click Save. Click Next to create the items and lots for the auction. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 13

14 Items and Lots Items in an auction are organized into Lots. A supplier can bid on an individual item or on the Lot. Some lots may be defined by the buyer as Forced Lots. This means the supplier must bid on all of the items within the lot, or none of them. Lots allow for organizing the items into logical groupings. Several items may be associated with a lot. To create item lots: 1. Click the Create Lot button on the toolbar. The Create Lot dialog box is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 14

15 Item and Lots, continued 2. Enter the following information about the lot: Lot Name (Required). Description. Forced Lot Indicates if suppliers must bid on all items in this lot. Allow Bi-Directional Bids at Item Level Indicates if suppliers can increase a bid value on a lot item when decreasing other item bid values. The overall effect being a decrease in the total bid value for the lot. Lot Minimum Change Set the minimum change for this lot. This overrides any value set in the Bidding Rules. 3. Click Save, or Save and Add Next to add another lot for the auction. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 15

16 Items and Lots, continued The list of lots is displayed on the Lots screen. To delete a Lot: 1. Click the checkbox at the far right of the lot name. 2. Click the Delete icon (Trash Can) on the toolbar. The verification dialog box is displayed. 3. Click OK to verify that this lot should be deleted. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 16

17 Item Definition Fields Item Definition Fields contain the information that is displayed for the supplier about the items or is used during the analysis of the results. There are system-generated item definitions that are included for all event items. The host has the ability to: Delete standard item fields - Only those fields that have an active checkbox may be deleted. Others (grayed out) are required fields and must be included in the Item Descriptions. Create additional fields Added fields can be used to better describe auction items. When an Item Field is created, it is immediately applied to every item in the event, for new and existing objects. An unlimited number of fields can be created. Examples of fields include Color, Size, Weight and Manufacturer Part. No. These would appear on the description for an Auction Item along with the standard system attributes such as Item Name, Unique Id, Reserved Price, etc. Fields can be easily defined to be a required field, enter a maximum field length and hold a default value. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 17

18 Item Definition Fields, continued Standard Item Definition Fields include: Name: Reference for the particular good or service being sourced. Revision: Item revision number. Specification: Item specification/url to the specification document. Minimum Desired Quantity: Minimum amount of the item to award as a result of the event (e.g., demand). Minimum Bid Quantity: The minimum bid volume accepted for the item. Maximum Bid Quantity: The maximum bid volume accepted for the item. Unit of Measure: Units applicable to quantity specified for this item. Reserved Price: The per unit price ceiling for this item. (Buyer only view.) Start Price: Price needed to start the bidding for each item. Minimum Bid Change Percentage: Set the minimum bid change percentage for an individual item. This overrides the event level minimum bid change value. Minimum Bid Change Amount: Set the minimum bid change at a specific currency level for an individual item. This overrides the event level minimum bid change value. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 18

19 Edit Item Definition Fields You can edit the list of fields to remove standard definitions or create new item definition fields. To delete an Item Definition Field: 1. Click checkbox of the field. (Note: You can click checkboxes for all items that are to be deleted.) 2. Click the Delete icon (Trash Can) to delete or hide the item. The verification dialog box is displayed. 3. Click OK to confirm deletion. The display is updated to show only the currently visible Item Fields. Note: To recover a deleted item, click the drop down menu and display Hidden item definitions. Select the item to be restored. You may want to add a new Item Definition Field to better describe the items in the Auction. The buyer can create a custom Item Definition Field within an event. For example, when sourcing Computer Equipment you may need to specify how much memory is needed. To create an Item Definition Field: 1. Click Create button on the toolbar. The Create Item Specification dialog box is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 19

20 Edit Item Definition Fields, continued 2. Enter the Name - A unique name that identifies the Item Specification. 3. Enter the Description a brief description of this field. This will appear on the Description column of the table. 4. Select the Field Type from the drop down menu. Field types include: Text Integer Decimal Yes/No Date Currency Selection Spacer Row Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 20

21 Edit Item Definition Fields, continued Once you select the Field Type, additional information needs to be provided. Note: The remaining fields may vary depending on the Field Type selected. To create an Item Definition Field (continued): 5. Default Value: Value that appears automatically during the item creation process. 6. Use in Formulas: Enables the field to be available for formulas. 7. Required Field: If enabled, the buyer must define a value when creating an item. Note: The field is required when a default value is set. 8. Available in List Screen: Can be displayed as a column in the item attribute list screen. 9. Include in Search Form: The field appears in a search form. 10. Visibility: Defines which parties are to see this item definition. 11. Click Save to save the new item definition. Note: The new item field is added to the list. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 21

22 Manage Items Once you have edited the Item Definition Fields, you are ready to start creating items. The buyer can add an unlimited number of items. You can add Simple Items to the auction. The definition of a Simple Item is an item/product that stands alone, and is not part of a set of items. Every item can be manually added to the auction or it can be selected from the Category Manager if it is populated. The one rule to follow is that every item added to the auction must be associated with a category in the Category Manager. To create an Item for the Auction: 1. Click the Create Single Item button on the toolbar. The Create Item dialog box is displayed. 2. Select the Lot for this item from the drop down menu. 3. To select the Category (required), use the Search feature or click the hyperlink. Note: Linking to a category is beneficial when inviting suppliers that are linked to a category and also when creating various reports. 4. Enter the Name (required). Note: The name must be unique within the RFx. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 22

23 Manage Items, continued 5. Enter the Minimum Desired Quantity. This is the amount the buyer is going to source. 6. Enter the Minimum Bid Quantity and Maximum Bid Quantity. These fields are displayed in the bidding for the suppliers. And the suppliers are bound by the parameters that you set here. 7. Select the Unit of Measure for the bid quantities from the drop down menu. 8. Enter the Reserved Price. If a Reserved Price is defined, the supplier must bid at or below the reserve price for the system to consider the bid during analysis. 9. Enter the Start Price. The price all suppliers must meet to begin bidding. 10. Click Enable Discount Bidding. Allow suppliers to bid on this item using a percentage off of an index value. Note: This option must be enabled in the Bidding Rules. 11. Enter the Minimum Bid Change Percentage or Minimum Bid Change Amount. This is the minimum that supplier bids must change. This value will override for this specific item, any global event value that has been set. 12. The next field is the Item Definition Field that we created earlier for this example. Enter the Material type. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 23

24 Manage Items, continued 13. Select the Currency Type allowed for this item. Use the right and left arrow keys to select the currency. 14. Click Save or Save and Add Next. Caution: When you use Save and Add Next, the next item prepopulates with the Lot and Category from the previous item. You can change the values as you create the new item. 15. Continue creating items as appropriate to the event. When you have added the last item, click Close to go back to the Items list page. The items are displayed within each Lot. You can edit an item description by clicking the hyperlink for the item name. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 24

25 Define Bid Fields Bid Fields are displayed on the form that suppliers use to place a bid on an item. These fields are either the standard fields or are created by the auction host, but populated by the suppliers. The auction host typically adds other bid fields when more information is required from the supplier. For example: In a product sourcing event, you may want prices on tooling or shipping in addition to price per unit. In a services sourcing event, you may ask for wage rate per hour and number of hours to create a formula for price per unit. As the auction host, you can: Configure a default value Apply fields to one or more items Specify the type of data Weight, score and use bid fields in formulas. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 25

26 Standard Bid Fields The system-generated bid fields that the suppliers will use for bidding are as follows: Minimum Quantity: The minimum amount the supplier is willing to sell. This cannot exceed the maximum capacity required by the buyer. Maximum Quantity: The maximum amount the supplier is willing to sell. This cannot exceed the maximum capacity required by the buyer. Price Per Unit: Currency type bid field. This field is required. Visibility has to be for both buyers and suppliers. This field can be converted into a formula. Base Price: Currency type bid field. This can be made required. Visibility has to be for both buyers and suppliers. This field can be converted into a formula. In addition to the system-generated bid fields, you can create new bid fields or pull them in from the library. For example, you may want to have the supplier enter a Transportation Cost or a Tooling Cost. Note: You can only create bid fields while an auction is in a Created status. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 26

27 Create Bid Fields To create a bid field: 1. Click the Create button in the toolbar. The Create Bid Field dialog box is displayed. 2. Enter the Name for the bid field. 3. Enter a brief Description of the bid field. 4. Select the Field Type from the drop down menu. Additional fields (based on the field type) will appear. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 27

28 Create Bid Fields, continued Example for Currency bid fields: Auto Score use to assign a score automatically to a user response. When you select this field, a Score field appears to the right of the Min. Value and Max. Value fields described below. Min. Value - the minimum value permitted in this field. Selecting Inclusive means the supplier can enter the minimum value. If unchecked, the supplier must enter a value greater than the minimum. Max. Value - the maximum value permitted in this field. Selecting Inclusive means the supplier can enter the maximum value. If unchecked, the supplier must enter a value greater than the maximum. Default Value a default which can be changed by the supplier when they bid. Use in Formulas - select if you plan to build a formula during analysis that uses this field. Available for List Screen - select if you want this field to be available for display on the Monitor tab Include in Search Form - use the drop down list to specify how this bid field is used in searches. Visibility - the default option is for Buyer Read and Supplier Write. The other option, Buyer Write and Supplier Read can be used to allow other buyers to test the event or respond with comments. Scope - use to identify if this bid field will apply to all items or just to a specific item. Click Save when done. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 28

29 Create Bid Fields, continued Example additional fields for Selection bid fields: Single or Multiple Selection indicate if the supplier can select only one or multiple answers. Auto Score use to assign a score automatically to a user response. For multi-selection, the score modes can be average, sum, lowest or highest. Selections List for each possible answer that can be selected, enter a value and a score (if applicable) in the top section. Then click the Add button to add it to the list. Default Value a default which can be changed by the supplier when they bid. Use in Formulas - select if you plan to build a formula during analysis that uses this field. Available for List Screen - select if you want this field to be available for display on the Monitor tab Include in Search Form - use the drop down list to specify how this bid field is used in searches. Visibility - the default option is for Buyer Read and Supplier Write. The other option, Buyer Write and Supplier Read can be used to allow other buyers to test the event or respond with comments. Scope - use to identify if this bid field will apply to all items or just to a specific item. Click Save when done. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 29

30 Create Item Bid Fields Custom bid fields can be defined for a specific item by creating an item bid form. For example, you may want to create a bid field for Freight that applies to a specific item. You will have to associate it with that item by creating an item bid form. To create an Item Bid Field: 1. Click the File Folder icon for the item with the unique item bid field. The Item Bid Form window is displayed. 2. Click the Create button on the toolbar. The Create Bid Field dialog box is displayed. 3. Enter the Name for the bid field. 4. Enter a brief Description of the bid field. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 30

31 Create Item Bid Fields, continued 5. Select the Field Type from the drop down menu. 6. Fill in the rest of the fields on the form similar to what you filled in for the event bid fields. 7. Click Save when done. Notice the item bid field is added to the Item Bid Form list. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 31

32 Suppliers After identifying the items and lots and creating the bid fields, you will need to select the suppliers that you want to participate in the auction. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 32

33 Invite Suppliers When inviting suppliers to your auction, you have the option to invite suppliers from your organization s list of suppliers, or from a previously run RFI. To invite suppliers from a list: 1. Use the Quick Search feature or click the Invite from Supplier List button on the toolbar. For this example, we clicked the Invite from Supplier List button. The Invite from Supplier List dialog box is displayed. Invite Suppliers from List You can invite suppliers to an entire event or to selected portions of an event. 2. Click the Invite for Reverse Auction button. The list of available suppliers is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 33

34 Invite Suppliers from List, continued The host will invite users within supplier organizations from this screen. Suppliers that have not already been invited will be listed. The suppliers displayed are filtered. Active: Suppliers that have active status for SourcePass. My Org Suppliers: Suppliers that have been linked to your buyer organization. My Supplier List: Suppliers that you have designated on your own supplier list under the Suppliers section on the top toolbar of SourcePass. To invite suppliers from a list (continued): 3. The list may contain multiple pages. Navigate to the page with the supplier s name. 4. Click the checkbox at the far right of the supplier you would like to add to your event. 5. Continue selecting suppliers as required. 6. Click the Invite for Reverse Auction button on the toolbar. 7. Click Close. The Invite from Supplier List dialog is re-displayed. 8. Click Close. The list of invited suppliers is displayed. Notice the list of invited suppliers is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 34

35 Identify Incumbents An Incumbent Supplier is the supplier who has the business today. Each Item can have an associated incumbent. This function allows the buyer to track the progress of the suppliers that they currently work with throughout this auction. To link incumbent suppliers with an item: 1. On the Set Incumbents step in the wizard, click the Folder icon at the left of the item. 2. Click the Link Incumbent Supplier to Item button on the toolbar. The Unlinked Supplier Organizations list is displayed. 3. Click the Checkbox at the far right of the name of the supplier organization. 4. Click the Link Selected Supplier button on the toolbar. 5. Click Close. Notice the selected supplier is identified as the incumbent for this item. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 35

36 Set Preliminary Bids If the auction is being created from an RFQ or RFP, the lowest bids from suppliers are carried over from the RFQ/RFP as Preliminary Bids. If bid fields were used, bids will only carry over if the supplier answered the default for each bid field. Preliminary bids can also be set by the auction host for each line item, supplier organization, and supplier user. To enter preliminary bids for each item and supplier: 1. Select the Organization from the drop down menu. 2. Select the User name from the drop down menu. 3. Click the Bid button at the far right of the item or lot for the preliminary bid. 4. Enter the bid information for this supplier for this item. 5. Click Submit Bid(s) >> when done. The bid confirmation dialog box is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 36

37 Set Preliminary Bids, continued 6. Click OK to confirm the bid. 7. The bids are entered for the selected supplier. 8. Continue entering preliminary bids for other suppliers and other items as appropriate. Repeat steps 1 through 6. Note: As bids are submitted, they appear in the upper window for each supplier organization and name. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 37

38 Edit the Supplier Invitation An automatic message is sent to all suppliers announcing the auction and describing how to participate. You can edit the message as appropriate to the event. Use the word processing formatting buttons to customize and format the invitation. To edit the standard message: 1. Delete text, type text or replace text as needed. 2. Click Save when done. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 38

39 Bid Transformations Transformational bidding allows the host to add performance or cost multipliers and adders to a supplier's bid without the supplier seeing them. The host has the option to define the transformation parameters to effect the entire auction or at the item level. Although they are 'hidden', these factors affect the bid price as well as the price the supplier needs to beat to take the lead. If the host has enabled the suppliers to see pricing, suppliers will see the net results from other suppliers transformed bid when bids are being transformed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 39

40 Bid Transformations Supplier View Both suppliers bid $1000 Formula: Bid * Multiplier A + Adder B Buyer View of Supplier Transformed Bids Multiplier A = 1.1 Adder B = 0 Multiplier A = 1.2 Adder B = 0 Supplier 1 $1100 Supplier 2 $1200 Supplier View of other Suppliers Transformed Bids Formula: Other Suppliers Transformed Bid / Own Multiplier A Supplier 1 view of Supplier 2 bid: $1200 /1.1 = $ Supplier 2 view of Supplier 1 bid: $1100 / 1.2 = $ When bids are being transformed, suppliers will see the net results from other suppliers transformed bid. This will depend on the visibility that the buyer allows to the suppliers. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 40

41 Auction Wide Definitions The supplier bid and how the bid value is transformed is based on the predefined formula that includes the supplier s actual bid as part of the formula. Notice the formula for the transformation at the top of the display where: "A" is a currency value multiplier used to transform the supplier s original price "PPU(supplier)". "B" is a currency value used to further "add" to the transformed price. "PPU(supplier)" represents the "base" price per unit originally submitted by the supplier. The General Defaults will be used for any suppliers where no specific values are entered. Note: Transformation settings do not impact items that utilize the discount bidding functionality. To create a bid transformation for a supplier: 1. For a specific supplier, enter a value in the Multiplier(A) field. Note: To increase the supplier bid, you should add the percent increase to the value of 1. For example, a 10% increase, you would enter a value of 1.10 (1 plus.10). To decrease the bid, enter a value less than one. 2. Enter a fixed amount in the Adder(B) field. In this example, we increased each supplier s bid by 10% and 5% respectively with no additional fixed values added. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 41

42 Transformations Applied to Specific Items Items NOT using discount bidding are displayed. Items using discount bidding do not appear on this screen. You can apply transformation to each specific item for each supplier. The General Defaults will be used for suppliers for which no specific values are entered. Note: If you want to keep the auction level values for some of the suppliers, you must copy them to the item level side. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 42

43 Define the Auction Team Defining Team Members allows for collaborative involvement with other buyers. You can choose which of your team members will assist you with the process of hosting the auction. The team members can also be used for a quality assurance/control process. Inviting the Team The system has a default invitation to send to the team members. However, the system allows edits to the standard invitation letter sent to the buyer team invited as Hosts/Co-Hosts to fit your needs. Letter text can be cut and pasted from another program or typed directly in the Message area. Edit the message as appropriate to the event and click Save to save the changes. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 43

44 Define the Team Members To define the team and assign roles and responsibilities: 1. Click the Add Team Members button in the toolbar. The Add Team Members dialog box is displayed. 2. Click the Checkbox for each team member to be added to the team. 3. Click the Add Team Members button on the toolbar. 4. The selected team members are added to the Team Members list. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 44

45 Define Team Roles and Responsibilities By default, the creator of the auction is designated as the Lead (L) role meaning they have full permissions within the event. The auction creator is also identified as the Primary Contact. The host will want to designate roles for each team member. The Member (M) role has the same permissions as the Lead except he or she cannot schedule the event to open or close. The Observer (O) role only has the ability to monitor the auction. To define the team and assign roles and responsibilities (continued): 5. Use the drop down menu to select a role. 6. Enter the Letter Value in the Role field next to the team member name to assign that role to that individual. In this example, the role of Member was assigned to Sean Correll. 7. Click Save to save the assignments. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 45

46 Attach a Document to an Auction There may be documents that the buyer wants to include with this auction such as terms and conditions, technical specifications or drawings. Or there may be documents or files that a supplier wants to include in a response or bid. The buyer and supplier can add attachments to an event and group them into specific folders. To attach a file or document to an auction: 1. Click the RFx Attachments hyperlink. The Attachments list is displayed. 2. Click the Add Attachment button. The Add Attachment dialog box is displayed. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 46

47 Attach a Document to an Auction, continued 3. Enter a Name for the attachment. 4. Select a Folder for the attachment. Folders include: T&Cs (Terms and Conditions) Technical Specification General Specification Communication Private Information files stored in this folder are only visible to buyers for this auction 5. Click Browse to select the file or document. 6. Navigate to the folder that contains the file. 7. Click to highlight it. 8. Click Open to select the highlighted file. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 47

48 Attach a Document to an Auction, continued 9. Click Save to save the attachment. The attachments dialog box will display who created this attachment and the date and time in which it was attached. 10. The attached file is added to the list. View an Attached Document To view an attached file or document: 1. Click the hyperlink in the Content column. The File Download dialog box is displayed. 2. Click Open to open and view the file contents, or click Save to download and save it locally. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 48

49 Schedule the Auction The last step is to schedule the auction and send out the invitations. An auction can be scheduled to Open Now or to open and close at pre-determined dates and times. The open and close date must be in the future. The close date does not have to be specified. If left blank, it is assumed that the auction is perpetual and that the host will manually close it when desired. The auction event is managed by the host. It can be: Opened to start the bidding. Paused to allow for corrections to be made. Resumed to restart the event after a pause. Closed to end all of the bidding and begin the analysis phase. The actions depend on the needs of the hosts, observers and bidders. Scheduling the Event To schedule the event: 1. Click the Calendar icon for the Opening Date/Time. Select a date on the calendar pop-up. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 49

50 Schedule the Auction, continued 2. Enter the Opening Time. If no value is entered, the default value of one minute past midnight is entered. A 24-hour clock is used for scheduling. 3. Enter the Closing Date/Time using the calendar. The closing date/time must be after the opening date/time. For an auction with staggering enabled, the "Close Time" refers to the close time for the first lot/event in the auction. The host can override the open/close date at any time by clicking the Open Now or Close Now buttons. 4. Select to send invitations automatically when the event is scheduled, or select manual distribution. If you provide an open date and choose to automatically send invitations, the invitations will be sent to approved suppliers invited to this round immediately after you save this information. For manual invitations, the Send Invitation buttons do not activate until after the open date is set. 5. If the auction is being held in rounds, enter the current Round Name and Description. (For example, round 1, 2, 3, 4, etc. If using rounds, you can open and close an event and manage the suppliers list to narrow the field of suppliers as the rounds progress.). 6. Click Save to schedule the event. Note: Events using discount bidding cannot be opened until all discount item-supplier combinations have base pricing entered. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 50

51 View Event Summary The last option in the RFx Wizard is the Summary Report. Use the summary section to review the auction. The auction bidding rules can be viewed from this Summary section on the Edit tab or from the View Bidding rules link on the Monitor tab in the auction. Information provided on the Summary includes: Host s Contact Information Overall Information about the Auction Participation Status Schedule Details Auction Bidding Rules and Auction Dynamics Supplier View Options selected Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 51

52 View Event Summary, continued Information provided on the Summary also includes: Advanced Dynamics related to bidding options Notification Rules settings Links to buyer and supplier attachments for the auction The buttons at the bottom of the screen include: Copy Auction into Template create a template of the auction to be used later as the basis for other events. Create Clone Auction duplicate the auction, usually for testing purposes. Send/Resend Invitation to Co-Hosts communicate the invitation with the other hosts of the auction. Send/Resend Invitation to Suppliers send the invitation manually to suppliers. View Details review details of the auction, including invited suppliers listed under Invitations as well as supplier profile details which include name and address. Auction Print Preview displays the auction information in a print format. Export Exports the auction details to an Excel spreadsheet. This is the same as the export function available from the View and Manage RFXs page. Copyright 2014 Exostar LLC All Rights Reserved Reverse Auction Create: 52