Auctions 101

1. Auctions 101 March 2019

2. What are Auctions and when to use them Reverse Auctions Regular Auctions Revenue generation Surplus Sales Licensing Rights In an ordinary auction (AKA 'forward auction'), buyers (outside of our procurement team) compete to obtain goods or services by offering increasingly higher prices. In a reverse auction, the suppliers compete to obtain business from the buyer and prices will typically decrease as the suppliers underbid each other. Quick RFx • 3 bids and a buy

3. Reverse Auctions Benefits Things to Consider PRICE VOLUME Specifications should be open Supplier management Setting up the bid process • Transparency • Real Time Negotiations • True best and final offer • Effective Solicitation Process • Minimal Process Costs • Accuracy in pricing • Cost Savings

4. Project Opportunities Assessment Opportunity Factors Questions to Ask Is there competition for this spend category? Are the specification's clear and concise? Is this a political category? Is price a major deciding factor? What is the spend on the category? CalUsource Spend module • Competition • Purchase size • Specifications • Specific vs vague • Goal for the souring effort

5. Reverse Auction Category Opportunities

6. When Do we Start Building an Auction In CalUsource? Done INSIDE of CalUsource Done Outside of CalUsource Done Outside of CalUsource

7. Creating a New Auction

8. Creating a New Auction

9. Auction – Event Setup Provide the basic details regarding your Auction.

10. Auction – Event Setup Determine what type of auction you would like to run

11. Auction – Event Setup CRITICAL: Event settings determines how the event will run

12. Auction Setup – Event Settings • Hide supplier name is for internal use. Suppliers automatically can not see other suppliers names • Check if you do not want Internal people to see your auction • Supplier Access • Enable Preview: Supplier can see the event before accepting the NDA • Enable Acknowledgement: Allows Suppliers to confirm they want to participate in the auction Determines what type of supplier bids you will allow during the auction

13. Auction Setup – Event Settings No need to click Dictates what the suppliers can and can not see within the Auction

14. Auction Setup – Event Settings • Extension Settings: Allows your auction to stay open if suppliers continue to bid • Extension Period: the length in which the auction will stay open • Extension Trigger: The timeframe which a supplier has to bid for the event to stay open longer • Example: If a supplier bids in the last minute, the event will stay open an additional minute When enabled by the Author, it provides an option (button) to the supplier, which when clicked, they will be at the number 1 position compared to the other suppliers

15. Auction Setup – Event Settings • Determines how you would like to start the bidding process. • Supplier’s lowest quote is the start price • Event Author pre-determines the start price Determines if suppliers can bid the same price.

16. Auction – Event Setup Once the auction ends, this is the time that you are giving yourself to review the supplier responses. Good when you have a large amount of bids and lots of line items

17. Creating an Auction Guideline

18. Creating an Auction Guideline

19. Creating an Auction Bidding Lot

20. Creating an Auction Bidding Lot Anything with an * is a mandatory field for event Author to fill out. If you do not have a “unit start price”, go back to your Event settings and update your “Initial Bid settings”

21. Creating an Auction Bidding Lot Click “Set Date & Time” to determine time and date for auction to open for this particular lot

22. Setting Auction Start Times Set the data and time that your auction will open and close. The lots can be staggered based on your settings, or you can program them all to open at once Event will open based on the settings listed here

23. Adding Team Members Type in your team members name and hit enter Your team member will only have viewer access to the event. They will not be able to modify any of the information listed If for any reason, you will not be able to manage you auction, please contact CalUsupport to switch users.

24. Adding Suppliers Type in your suppliers name and click enter. The system will automatically search for the supplier names that best fit the name provided The supplier name listed will be the primary supplier listed on the account. If you would like to change the name, this will need to be done in the supplier profile.

25. Adding Attachments For any additional documents that you would like to include, the attachments section is great place to add those documents.

26. Publishing your Auction When you are ready to publish your auction, click the down arrow next to “Actions”

27. Publishing your Auction Select “Publish to Supplier”

28. Confirming you wish to publish The system will ask for confirmation, before moving forward. After you select “Yes” CalUsource will check for any errors. If the project is error free, it will prompt you to craft a letter to suppliers. Write your notice to suppliers (make sure not to include identifying information in the email) and click send.

29. Sending Notice to Suppliers – Published Auction Write your notice to suppliers (make sure not to include identifying information in the email) and click send.

30. Help is always available for those who ask… Internal External Part of GEP’s wide range support includes helping you with your first Auction! For GEP Support to help you, please follow these recommendations: Complete your strategy and supplier selection in advance Contact support@gep.com and CalUsupport a MINIMUM of two weeks in advance of creating your event in CalUsource Request GEP’s assistance with reviewing your Reverse Auction in CalUsource Available Today • CalUsupport support@ucprocure.zendesk.com • CalUSource.net to access this webinar Coming Soon • Quick Reference Guides • Additional training videos