Dutch bidding is a form of reverse auction that is often used to sell large quantities of goods or multiple similar goods.

In a Dutch auction, the seller starts with a higher  price and gradually lowers the price until a buyer is willing to accept the current price. The first buyer to accept the price wins the deal. This approach helps determine the actual demand and price levels in the market.

Japanese Auction

Japanese-style bidding, also known as button bidding, is often used to purchase high-value goods or services. In Japanese-style bidding, the seller will start with a lower price and then gradually increase the price. In each round, all on-site suppliers must clearly express their willingness to accept. Only by expressing a willingness to accept can they stay in the bidding. If If you do not accept it, you will exit and will not be allowed to enter again until there is only one person left.

Anglo-American bidding is also a common He Tuber auction form, also known as reverse bidding. In this kind of bidding, the buyer takes the lead, and the purchaser gives detailed specifications of the goods to be purchased. Multiple suppliers bid in sequence, with the prices getting lower and lower, and finally the one with the lowest price wins the bid.

Forward bidding is the most common bidding method used in antique auction houses, and is usually used to auction items or services. In forward bidding, participants gradually increase their bids until the end of the auction is reached. The characteristic of this bidding method is that the bids gradually increase from low to high, and the highest bidder wins in the end. It is commonly used in the waste material processing of B-end enterprises today.

2. Design of system bidding gameplay in SRM

According to the quotation mode of each round of suppliers (buyers), suppliers must put forward their own quotations during each round of bidding. After the countdown of the first round of quotations, the highest quotation will be announced, and the quotations of suppliers in each subsequent round will be announced. Must be higher than the highest bid from the previous round.

If the supplier chooses to abstain, he or she may not fill in the quotation and then enter the bidding waiting room to wait for the final blind bid. During this period, the bidding process cannot be viewed.

When the number of suppliers quoting ≤ 1, the highest quotation will not be announced, and all suppliers (including those in the waiting room) will participate in the final blind bid.

The bidding condition in the blind bidding stage is that it must be higher than the highest historical bid. After the blind bidding countdown ends, the bidding activity ends, and the auction organizer can enter the negotiation stage based on the historical quotation.

Before the bidding starts, the supplier (buyer) needs to make a quotation. If no one bids within the countdown, the bidding activity will automatically fail. If a supplier puts forward a quotation, the countdown for no quotation will be reset.

After resetting the unasked quotation countdown, if no one quotes a higher price, it will directly enter the blind bidding stage. If a supplier proposes a higher price, then the unmanned countdown will be reset and the above steps will be repeated.

Suppliers do not need to quote, the system automatically calculates and displays the quotation according to the set price adjustment range. The interval between each quotation change is If it is read that there is input at the purchasing end, the delay countdown will change to X minutes.

If it is the total amount mode, the material quotation is packaged, each material has a starting price that increases/decreases proportionally, and the total amount changes accordingly. If more than one supplier is accepted, the accepted supplier will enter the next round of bidding until only one supplier accepts and the bidding ends.

If it is a sub-item quotation for a single material, each/group of materials bids separately and increases/decreases in proportion. If more than one supplier accepts, the accepted supplier will enter the next round of bidding until only one accepts and the bidding ends.

The countdown is the countdown for each round of price changes, and the purchaser can also adjust the countdown according to the situation. No blind reporting. Bidding ends for all materials.

Suppliers do not need to quote, the system automatically calculates and displays the quotation according to the set price adjustment range. The interval between each quotation change is If it is read that there is input at the purchasing end, the delay countdown will change to X minutes.

If it is the total amount mode, the material quotation is packaged, the starting price of each material is reduced/increased in proportion, and the total amount changes accordingly. If the supplier accepts, the bidding will be based on the material price and required quantity of the entire project, and the bidding will end.

If it is a sub-item quotation for a single material, each/group of materials will be bid separately, and the price will be reduced/liter proportionally. If a supplier accepts it, the quantity of the material will be reported. If the remaining demand quantity of the material is >0, the system will continue to bid for the material/group until the material quantity reaches 0, and then enter the next/group material bidding.

The countdown is the countdown for each round of price changes, and the purchaser can also adjust the countdown according to the situation. No blind reporting. Bidding ends for all materials. 5. Each supplier can only win this project once or a certain/group of materials once.

In the process of designing the bidding, in addition to paying attention to the design rules of the main bidding process gameplay, we must also consider the differences, limitations and innovations between online and offline. When designing the online bidding gameplay, we can consider several design points. :

When the auction begins, an initial countdown timer starts counting down from a specific period of time (for example, 30 seconds or 1 minute). Whenever a bidder fills in a new quotation and the countdown has ended, the system will give a certain extension time for filling in the bid. Bid submissions at the last minute will also extend the countdown. This prevents bidders from waiting for the last minute to submit bids. On the other hand, it also considers the inability of users to submit bids due to their inexperience in using the system, which affects the bidding process and results.

The blind bidding mechanism is a bargaining method specially designed for auction organizers. This mechanism will prevent suppliers from knowing whether they have the highest bid in the end. It also gives previous suppliers the opportunity to bid again, thus making them blindly bidders. If a higher bid is quoted during the bidding stage, the auction organizer can use this advantage to negotiate with the supplier after the bidding activity to obtain a higher bid result.

During the bidding process, the supplier's filling and recording time will be monitored in real time by the monitoring room hosted by the auction, including the quotation filled in by each supplier before the end of the countdown, the supplier's quotation range, the supplier's quotation history, the supplier's Quotation ranking, etc. Real-time monitoring of the bidding process can help the seller control the bidding process. When it is found that the bidding process requires the seller to intervene, the seller can adjust the bidding at any time through the console.

It is a tool used to manage online bidding activities, with the purpose of providing auction organizers with better control of the bidding process. The console can be used to set the delay rules of the bidding timer, bid suspension, end bidding and other functions, which helps the auctioneer better manage unexpected or unfavorable scenarios during the auction process.

For example: when the auctioneer discovers bid-rigging, it can immediately stop the auction and lose the bid; the auction organizer can monitor the supplier's bidding data and evaluate the supplier's bidding psychological behavior, thereby modifying the step size or Bid countdown to promote bidding activity and obtain higher bids.

The system will monitor the IP addresses of all participants to prevent bid-rigging, bid-rigging and other irregularities by suppliers. If any risks are found, the auction organizer will be notified in real time. Before the bidding begins, the system will prompt the buyer to clearly stipulate the bidding rules and policies. , and clearly state the consequences of violating these rules. All participants are required to pass identity verification and provide real identity information to prevent anonymous or false participation.

In general, different types of sourcing bidding methods have different application values ​​in SRM. You can choose the most suitable bidding method according to the nature and needs of the procurement. No matter what form it takes, sourcing bidding is an important tool that can help organizations obtain the best supplier cooperation agreements, improve procurement efficiency and reduce costs.