The way Market Dojo has been built means that the tool is incredibly easy to use, it has been said time and time again that the main reason people have committed to using the platform in choice over the big ERP players in the game, with full coverage solutions, is Market Dojo’s ease of use. This means that the adoption rate is incredibly high and that when you pay for it, your team actually use it.
Now, what may surprise you and anyone that has regular exposure to our tool is that it can actually do more than you might think it can. For those of you that use the tool, you will know that you can either run a ‘Forward’ or ‘Reverse’ auction in the style of ‘Ranked’, ‘Open’ or ‘Japanese’. But alongside that, there are also ways you can build a:
In this article, I plan to focus on ‘Brazilian auctions’.
First off, I will explain exactly what a Brazilian auction is. This is where a Buyer determines the price they are willing to pay for an item and the Supplier provides how many of that item they are willing to provide at that price. The auction will continue until a Supplier provides a bid that no other Supplier is willing to top. It is a very interesting and unique way of running an event.
Below, I will show you how to do this in Market Dojo.
You will want to ensure that you have set up a reverse, ranked auction in the tool. The ranked part really is optional but it gives suppliers the benefit of knowing exactly where they stand to help them better their bid.
Next, you will want to decide which lotting format you will use. If you select advanced lots, this will allow you the option to bring in the functionality you want to use.
Then when building your lot first add your price component and make sure it is ‘Host’ entered price so that you can input the price you are willing to pay for the item you are sourcing.
Now, you will want to enter a Supplier quantity lot in which they can provide their quantity bids as shown below.
Following this, you will then add a total by clicking on the add component option and selecting add total.
Then click on the pencil icon next to the first total number, you will then get a pop-up notification.
Finally as seen by this pop up you can then take 1.1a x(*) by 1.1b to get your lot total. Make it ranked and visible (optional) in the bottom tick boxes and you are then ready to run a Brazilian auction focused on the quantity number that the supplier can provide as opposed to the pricing that the supplier can offer, this helps you maintain some more control over your pricing and can be useful in a number of situations.
If you liked what you saw here please look out for our coverage of more auction types coming up such as those listed at the start of the article. But thank you for your time and please get in touch with us if you have any questions.
Market Dojo helps procurement professionals negotiate better with our on-demand eSourcing tools. If you’d like to find out more, get in touch or register for free and play around with our software for yourself!