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Agenda
Interactive Discussion
Auction Overview & Value
Auction Types
RFx & Auction Strategy & Preparation
Stakeholder Buy-In
Supplier Participation
RFx Evaluation
Summary
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Auction Overview
Auction Types
Forward Auction Drives price up (Example:
Selling on eBay, selling reclaimed materials)
Reverse Auction Drives price down
Traditional Bidding Considers straight price;
other evaluation components are considered
outside bidding process
Transformational Bidding Considers value in
rankings; Ex. Shorter lead time = improved
ranking
Optimized Bidding Define optimal outcome,
rankings encourage this model; Ex. More
geographies = improved ranking
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Auction Tools
Ability to Execute
Challengers
Leaders
Bravo
Ariba
Iasta
Solution
Global
SynerTrade eProcure Emptoris SAP
Zycus
Curtis Fitch
Pool4Tool
AEC Soft USA Ivalua
Fullstep
Niche Players
Visionaries
Auction Strategy
Stakeholder Buy-In
Identify senior executive champion
Ensure stakeholder buy-in prior to RFx
Agree that this should be competitively bid then
pursue auction as a tool to facilitate bidding
Conduct auction demonstration
Show previous outcomes
Collaboratively develop bidding strategy, timeline,
bidders conference
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Bidder Strategy
RFI enables early input from bidders to determine
bidding strategy
Lowest cost supplier strategy will drive prices down
further
# of suppliers per location
Ensure service coverage
Pricing is only one of the criteria (quality/service, etc.)
Reveal only rank or rank and bids
Determine bidding requirements vs options
3 or more suppliers per bidding opportunity
Determine Q&A process; use tool to track
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Preparation is critical to
auction success
Supplier Participation
Host online bidders conference including training on
bidding tool
RFI may help bidders understand tool before RFP
Proactive communication still required
If a supplier is not bidding it may mean they dont
understand technology
Publish Help Desk #
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Summary
Increasing market pressure & insight
decreases cost
Technology adoption can be
challenging
Use breeds acceptance
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Whitney Taylor
Advanced Micro Devices, Inc. (AMD)
Global Supply Management
Whitney.taylor@amd.com
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