Event types

You can create different types of events in Sourcing Optimizer.

RFQ

RFQ events can last for weeks, and bidders are not typically all bidding at the same time. For an RFQ event, Sourcing Optimizer provides bidders with round feedback during the subsequent round.

  • Standard: A round-based event where feedback is provided after each round
  • Purchaser-only: A single-round event where bids are collected outside of Sourcing Optimizer and uploaded for analysis

For purchaser-only RFQ events, bidders are not invited to participate using Sourcing Optimizer and therefore do not receive feedback through the system. The purchaser uses Sourcing Optimizer to upload and analyze the bids that they received for the sourcing event.

Auction

During an auction, all participating bidders are typically online at the same time, and Sourcing Optimizer can provide bidders with real-time feedback as bids are received.

  • Reverse English auction: the bidders place bids on lots within a defined time frame. Lower bids are considered better compared to the competition
  • Reverse Dutch auction: buyers establish a starting price per lot, which gradually increases at predefined intervals until a reserve price is reached

Table 1 provides a summary of the differences between RFQ events and auction events.

Table 1. RFQ and Auction event differences
Feature RFQ English Auction Dutch Auction
Feedback During subsequent round Real-time feedback No
Evaluate step Yes No No
Award step Yes No No
Bid Decrement Based the on bidder's own lot bid Based on:
bidder's own lot bid;
next-ranked lot bid;
or first-ranked lot bid

Depends on the auction type.

Price change can be incremental or decremental
Support for:
Bundle Bidding Yes No No
Capacity Limits Yes No No
Activity Point Tracking Yes No No
Evaluation Frequency No Yes Real-time feedback
Bidding Extensions No Yes No
Global Rank-Based Allocation No Yes No