Saturday 22nd Oct 2016 - Logistics Manager

ETightening eAuction operating procedures

A set of industry standard operating rules and deployment solutions for eAuction conduct has been launched by e-Three, a company dedicated to providing comprehensive eAuction training and support.

Centred around an ‘Integrity Code for eAuctions, e-Three;s offering includes ICE, ICE2 and ICE3. ICE consists of three separate offerings: Supplier Rules; Buyer Rules; and Buyer eAuction Declaration. Together these represent a flexible declaration of how the eAuction will be conducted published with the Request For Quotation (RFQ).

eAuctions are a relatively new tool used by procurement organisations. As with any new tool, there is no consistency in the way they are deployed. This results in bad practice and unethical behaviour.

Currently, most eAuction rules are dictated by the buying organisation, in the form of a ‘bidder agreement’. These are biased heavily in favour of the Buyer, and overlook the needs of the suppliers. Subsequently, suppliers are said to have become disillusioned with the process and such practice could threaten to undermine the deployment of eAuctions.