e-Auction methods on digital platforms have transformed traditional negotiations, offering efficiency, transparency, and competitive bidding. However, suppliers new to this method may need clear guidance and assurance to participate confidently. As a professional buyer, your initial communication can set the tone for this new engagement. This blog post outlines 8 key points you should include when inviting suppliers to e-Auction.

8 keys when inviting suppliers to e-Auction

1. Introduce the Concept of E-Auctions

Begin by introducing the concept of e-auctions. Explain that it is a digital procurement method where suppliers bid in real-time, competing to provide the best possible offer in terms of price, quality, delivery, and other factors. Stress on the transparency and fairness of the process.

2. Explain the Benefits

Highlight the benefits of participating in an e-auction. These could include gaining potential new business, understanding market positioning, and establishing a transparent, professional relationship. Reiterate that e-auctions offer an equal playing field for all suppliers.

3. Detail the E-Auction Process

Provide a clear and detailed explanation of the e-auction process. This should include information on how to register, bid, and monitor the auction progress. Also, provide timelines for each step and any guidelines for submitting supporting documents or information.

4. Outline Evaluation Criteria

Transparently share the evaluation criteria that will be used to assess bids. Whether it’s price, quality, delivery times, or a combination of factors, make sure the supplier understands how their offer will be evaluated. This allows them to prepare a competitive and compelling bid.

5. Assure Confidentiality

Assure suppliers that their data will be confidential and only used for the purpose of the e-auction. Data privacy and security is a paramount concern, and knowing their information is protected will foster trust.

6. Share a Point of Contact

Designate a point of contact from your procurement team who can answer any questions and provide support. This will help in making the supplier feel comfortable and well-guided through the e-auction process.

7. Encourage Questions and Feedback

Invite the supplier to ask any questions or share concerns about the e-auction process. Open communication channels show that you value their participation and are committed to supporting them throughout the process.

8. Extend a Formal Invitation

Finally, formally invite the supplier to participate in the e-auction. Express your hope that this will be a beneficial opportunity for both parties and that it will lead to a stronger, more productive business relationship.

Inviting suppliers to e-Auction – example

Subject: Invitation to Participate in Our Upcoming Procurement E-Auction

Dear [Supplier’s Name],

I hope this message finds you well. As the Procurement Manager of [Your Company’s Name], I am writing to extend an invitation for [Supplier’s Company Name] to participate in our upcoming procurement e-auction scheduled for [Date and time].

An e-auction is a transparent, digital procurement process where suppliers like yourself have the opportunity to bid in real-time on our requirements. This method allows for a competitive, yet fair environment, where the focus is on providing the best possible offer in terms of price, quality, service, and delivery.

Participating in our e-auction comes with several benefits. It is an opportunity to potentially secure new business, understand your market positioning better, and develop a professional, transparent relationship with us.

The e-auction will take place on our secure online platform, [E-Auction Platform Name]. Once you register and the e-auction opens, you will be able to submit bids and monitor the progress of the auction in real time. We will provide a comprehensive guide detailing how to register and participate, alongside all relevant timelines.

Our evaluation criteria include, but are not limited to, price, quality, delivery schedule, and adherence to our sustainability policies. Full details of our evaluation criteria will be included in the auction documentation.

We value your privacy and assure you that all data shared during the e-auction will be strictly confidential and used solely for the purposes of the e-auction.

We have designated [Contact Person’s Name and Position], who will be your point of contact for any questions or support you may need in the lead up to, during, and after the e-auction. They can be reached at [Contact Information].

We encourage you to ask any questions or share any concerns you may have about the e-auction process. Your feedback is extremely important to us and will help us ensure that the process runs smoothly and effectively.

We look forward to your participation in the e-auction and hope that it will mark the beginning of a strong, productive business relationship between [Your Company’s Name] and [Supplier’s Company Name].

Best Regards,

[Your Name]

[Your Position]

[Your Contact Information]

Attached are:

1: Guide detailing how to register and participate.

2: Pre qualification criteria (answered in the online platform)

3: List of products included in the a-auction.

4: Time schedule for the full sourcing cycle

Above information can also be found in the online plattform

Please note that this is just a sample letter and should be modified to suit your company’s specific needs and context.

Summary: inviting suppliers to e-Auction

In conclusion, inviting a new supplier to a procurement e-Auction is not just a call to bid; it’s an opportunity to set a positive tone and foster a trusting relationship. Including these key communication points in your invite can help in demystifying the e-auction process, making new suppliers feel valued, and ultimately, paving the way for a successful procurement exercise.

Want to learn more

Why not try our training program about Procurement e-Auction. These courses on procurement e-Auctions are designed to provide professionals like you, who are responsible for purchasing goods and services, with a deep understanding of the connection between category strategies and online procurement auction as negotiation method, best practices, and considerations when setting up an e-Auction. Through a combination of theoretical concepts, practical case studies, and blog posts, these courses will empower you to navigate the intricacies of conducting successful e-auctions and maximize value for your organization.

Note: Illustration to the blogpost “Inviting suppliers to e-Auction – 8 keys” was created by CHAT-GPT on August 2, 2023.

At Utbildning Inköp you will find more information about LHTS’ courses in Swedish.