Transcript Reverse Auctioning at Penn - University of Pennsylvania

Reverse Auctioning
at the University of
Pennsylvania
Purchasing Services
May 2003
Reverse Auction Overview
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Tool to secure Competitive Bids
Utilized for Larger-Scale Goods & Services
Offers are collected online in real-time
Supplier Participation by Invitation Only
Short Duration Auctions to maximize
downward price pressure
Interest and support came from senior
management
Event Process Overview
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Opportunity Analysis
Aggregate demand, create product specifications
 Evaluate terms & conditions
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Identify potential suppliers
Begin Development on RFQ/RFP
Auction Ramp-up
Perform Auction
Execute Contract
An end-to-end solution
Need
Identified
Qualify
Suppliers
Prepare
Proposals
-Performance
& Qualification
Scoring
-RFQ
Development
Wizard
-Online
Questionnaire
-Multiple Line
Items and
Lots
-Supplier SelfEvaluation
-Document
Library
Send &
Receive
Proposals
-2-Way
Collaboration
-Send/
Receive
Documents
-Electronic
Q&A
Evaluate
Negotiate
Select
Proposals Price/Terms Winner(s)
-Receive
Proposals
Electronically
-Proposal
Scoring
-Interactive
Discussions
-Electronic
Bidding
-Best Value
Awards
-Reverse
Auction
-Award to
Multiple
Suppliers
-Electronic T’s
& C’s
Negotiation
-Automatic
Win/Loss
Notifications
Agreement
Negotiated
Benefits
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Easy to use tool to streamline the procurement
process
100% web-based
Streamlines the communication process
No additional time is needed to create the same
documentation as in the past
Self-Service and Buyer-Centric
Average auction savings 23% & 75% cycle time
compression
Initial Event
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HVAC Filters
PACC Participation
Develop RFP with all schools participating
schools requirements
Ramp-up all suppliers for pre-bid and auction
event
Live summary of details on the site
Product Demonstration
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PROCURI.COM
Conclusion
Please visit the Penn Purchasing Services
Reverse Auction web site for
additional information:
www.purchasing.upenn.edu/about/bidding.php