E-sourcing event

Case: Designing an E-Sourcing Event with AI Support

This case illustrates how students can create an E-sourcing event and leverage an e-sourcing platform (e.g., Market Dojo) in combination with AI (such as ChatGPT) to plan and execute a complete sourcing event.

Students shall create an Invitation Letter, a Pre-Qualification Questionnaire (PQQ), an RFQ lot, and a Reverse Auction. Students can choose freely what Is to be sourced.

The text below provides practical tips on how to craft prompts for ChatGPT to maximize its utility and emphasizes the trial-and-error nature of developing a successful event.

At the end students shall be ready to discuss three key learnings that highlight how e-sourcing and e-auction differ from traditional manual RFQ processes.

1. Overview of the Event Structure

  1. Invitation Letter:
    • Purpose: Introduce the sourcing event to potential suppliers, set expectations, and specify timelines.
    • Delivered via: Text and/or document attachment on Market Dojo + email notification.
  2. Pre-Qualification Questionnaire (PQQ):
    • Purpose: Screen suppliers for suitability (e.g., financial stability, certifications, sustainability credentials) before inviting them to quote on specific lots.
    • Delivered via: Online form within Market Dojo with scoring rules.
  3. RFQ Lot:
    • Purpose: Define detailed technical, commercial, and contractual requirements for the goods/services.
    • Delivered via: Structured questionnaire and, if relevant, Excel/PDF attachments, enabling suppliers to respond with prices and compliance statements.
  4. Reverse Auction:
    • Purpose: Conduct a live downward-bid auction among pre-qualified suppliers after RFQ submissions, driving further competition.
    • Delivered via: E-auction module in Market Dojo, with real-time ranking and countdown timers.

2. Using AI (ChatGPT) to Support Event Development

2.1. Why Assign a Role?

  1. Expert Perspective
    • By telling ChatGPT “You are a seasoned procurement manager” or “You are a specialist in the European office‐furniture market,” you cue it to draw on procurement best practices, industry vocabulary, and regulatory awareness that a novice prompt wouldn’t invoke.
  2. Consistent Tone & Vocabulary
    • A role helps ensure the language, formality, and level of detail match what a real stakeholder would expect. For instance, a “CPO persona” will include contract‐law phrasing; a “sustainability auditor persona” will emphasize environmental criteria.
  3. Focus on the Right Details
    • Different personas naturally prioritize different things. A “finance‐focused buyer” will ask more about cost breakdowns, payment terms, TCO, and risk contingencies, whereas a “supplier‐market expert” will zero in on lead times, production capacity, and competitive benchmarks.

2.2 How to Incorporate Role Prompts

  1. Top‐Level Instruction
    Start your prompt by naming the persona.
    • “You are a Procurement Director at a mid‐sized European manufacturer. Provide…”
    • “You are a Senior Category Manager specializing in office furniture. Draft…”
  2. Add Context & Objectives
    Immediately after assigning the role, state the specific task or goal (This tells ChatGPT not only who it is, but what “angle” or “lens” to use when writing).
    • You are a Senior Category Manager specializing in office furniture for corporate clients. Your objective: Draft a Pre‐Qualification Questionnaire focused on supplier financial health, ESG criteria, and technical compliance.
  3. Include Constraints or Preferences
    Augment the role with any stylistic or policy constraints.
    • You are a seasoned procurement manager with expertise in EU public tender rules. Draft an Invitation Letter that: 1. Complies with EU transparency guidelines. 2. Uses plain English so that small suppliers clearly understand each step. 3. Fits on a single page if printed.
  4. Ask for Rationales & Checks from the Persona
    If you want ChatGPT to critique its own work “as the assigned role,
    • You are a Category Analyst with 10 years’ experience. First, draft the RFQ section for ergonomic chairs. Second, review your own draft and list three potential supplier questions or ambiguities that might arise.

2.3. Sample Role‐Based Prompts

  1. Procurement Buyer Persona
    • You are an experienced procurement buyer for a multinational. Write an RFQ lot for 200 adjustable‐height workstations. Emphasize TCO, energy efficiency, warranty, and EU compliance. Explain each clause in a short rationale paragraph.
  2. Supplier Market Expert Persona
    • You are a supplier market analyst specializing in European office‐furniture manufacturers. Provide a brief overview (max 200 words) of typical lead times and capacity constraints in Q3 2025. Then suggest three realistic delivery windows we should build into our RFQ.
  3. Legal & Compliance Specialist Persona
    • You are a legal counsel for a procurement team. Review the draft PQQ questions below and rewrite any that might conflict with GDPR or antitrust regulations. Highlight your changes with annotations.

2.4. Best Practices & “Trial‐and‐Error” Reminder

  1. Start with a Broad Persona, Then Refine
    • If the answer is too generic, add more detail: “Senior CPO in the Nordics” vs. just “Procurement Manager.”
    • Observe how specificity (e.g., “focus on EU tax invoices”) changes the output.
  2. Combine Multiple Personas in Stages
    • Example workflow:
      1. Stage 1: “You are a Category Manager—generate a first draft of the Invitation Letter.”
      2. Stage 2: “Now switch to Legal Counsel—review that draft for compliance gaps.”
      3. Stage 3: “Finally, as a Supplier Relationship Manager, simplify language for small vendors.”
  3. Experiment & Iterate
    • If the tone is too formal, try “Procurement Lead at a startup—keep it conversational.”
    • If key clauses are missing, add “You are an international trade lawyer—ensure export‐control language is included.”
  4. Validate with Real Stakeholders
    • After you generate content as different personas, have an actual procurement colleague—or a peer—scan it for real‐world feasibility. Then loop back and tell ChatGPT:“We need to reflect feedback that our warehouse cannot accept partial shipments—update the Delivery Terms accordingly.”

2.5. In Summary Role prompts

  • Clearly state the persona, objective, and any constraints up front.
  • Encourage multiple persona passes (e.g., Buyer → Legal → Supplier Relations) to catch gaps and enhance quality.
  • Emphasize that “trial and error” is expected: tweak the persona’s seniority, domain, or tone until the output aligns with real‐life requirements.

You will see how a “Procurement Director voice” differs from a “Supplier Market Analyst voice,” and get AI assistance that’s purpose‐driven rather than generic.

2.6. Benefits of AI Assistance

  • Rapid Content Drafting: Generate initial drafts of Invitation Letters, PQQ questions, and RFQ templates in minutes.
  • Consistency Checks: Ask ChatGPT to review documents for unclear language, missing requirements, or ambiguous phrasing.
  • Iteration & Refinement: Use AI for multiple rounds of “rewrite this” or “add more detail on X,” reducing manual drafting time.

2.7. Example Prompting Strategies

Tip #1: Be Explicit About Context
Bad Prompt: “Write me an RFQ.”
Improved Prompt:

You are a professional buyer and holds specific expertise around the supplier market XXXX. I am creating an RFQ lot for procuring XXXXXX office chairs. They must meet the following specs: ergonomic design, adjustable height, 5-year warranty, and ISO 14001 compliance. Write a detailed RFQ section including technical specs, delivery requirements, and evaluation criteria. Structure it as: 1) Overview, 2) Technical Requirements, 3) Commercial Terms, 4) Evaluation Criteria.

Tip #2: Define Tone and Audience

Please draft an Invitation Letter aimed at mid-sized furniture suppliers in Europe. The tone should be professional yet approachable. Include: a brief introduction to our organization, the purpose of the sourcing event, key dates (PQQ submission deadline: July 10, RFQ response deadline: July 20, reverse auction date: August 1), and instructions on how to register on Market Dojo.

Tip #3: Request Iterative Refinement

Here is my initial PQQ question list. Please review and suggest two additional questions around sustainability compliance. Then rewrite all questions using clear, non-legalistic language suitable for small suppliers.

2.8. Encouraging Trial & Error

  • Start Broad, Then Narrow: Begin with a general request (“Draft PQQ questions for electrical contractors”) and, once you have a baseline, refine to specifics (“Include questions about ISO 9001, safety record, and on-site environmental policies”).
  • Check for Gaps: After AI generates content, compare against your own knowledge and or company guidelines; identify missing clauses or unclear areas.
  • Multiple Passes: Don’t expect a perfect first draft. Run several iterations with prompts like “Add more detail on delivery logistics” or “Simplify language for a non-technical audience.”
  • Save Versions: Label iterations (e.g., “Invitation_Letter_v1,” “Invitation_Letter_v2”) so you can track which AI-suggested changes improved clarity or compliance.

3. Sample Deliverables

Below are concise templates illustrating each component of the event. Students can paste these into Market Dojo as Word/PDF attachments or copy-paste into text fields.

3.1. Invitation Letter (Template)

[Company Letterhead]

Date: {{Current Date}}

Subject: Invitation to Participate in Sourcing Event: Supply of Office Chairs

Dear [Supplier Name],

We are pleased to invite you to participate in our sourcing event for the supply of 100 high-efficiency ergonomic office chairs. This event is being conducted through the Market Dojo e-sourcing platform. We believe your company’s expertise and product offerings make you a strong candidate.

Event Summary:

  1. Pre-Qualification Questionnaire (PQQ)
    • Purpose: To confirm your ability to meet technical, commercial, and sustainability requirements.
    • Deadline: July 10, 2025, 17:00 CEST.
    • Access: Complete the PQQ form on Market Dojo at [link].
  2. Request for Quotation (RFQ) Lot
    • Only suppliers who successfully clear the PQQ will be invited to submit detailed quotations.
    • Deadline: July 20, 2025, 17:00 CEST.
  3. Reverse Auction
    • Date & Time: August 1, 2025, 10:00–11:30 CEST.
    • Platform: Market Dojo Auction Module (link to be provided after RFQ evaluation).

Next Steps:

  1. Log in to Market Dojo (if you have not yet registered, please create an account at [registration link]).
  2. Navigate to the “Events” section and open “Office Chairs Sourcing Event 2025.”
  3. Complete and submit the PQQ by the deadline.

Key Contacts:

We look forward to your participation. Should you have any questions, feel free to reach out to the contacts above.

Sincerely,

[Signature]
Procurement Department
Our Company AB
www.ourcompany.com

3.2. Pre-Qualification Questionnaire (PQQ) (Template)

Instructions to Supplier

Please answer all questions fully. Attach supporting documentation where indicated. Failure to provide required information may result in disqualification.

  1. Company Information
    1.1. Legal Entity Name: __________
    1.2. Head Office Address: __________
    1.3. Year Established: ____
    1.4. Number of Employees: ____
  2. Financial Standing
    2.1. Attach audited financial statements for the past two fiscal years.
    2.2. Provide annual turnover for office furniture sales in 2023 and 2024 (in EUR).
  3. Quality Management
    3.1. Do you hold ISO 9001 certification? (Yes/No)
    3.2. If yes, upload a copy of the certificate.
  4. Environmental & Sustainability
    4.1. Do you hold ISO 14001 or equivalent environmental certification? (Yes/No)
    4.2. Describe your sustainability initiatives related to material sourcing and manufacturing.
    4.3. Explain how you minimize waste and optimize packaging.
  5. Health & Safety
    5.1. Provide your safety incident rate for the last 12 months (e.g., LTIFR).
    5.2. Describe your on-site safety protocols when delivering and installing office furniture.
  6. References & Past Performance
    6.1. List three recent clients (within past 2 years) for whom you’ve supplied similar office chairs. Include contact details and project values.
  7. Compliance & Legal
    7.1. Are there any ongoing legal disputes or bankruptcy proceedings against your company? (Yes/No). If yes, provide details.
    7.2. Confirm compliance with EU labor regulations and any local labor laws in your manufacturing locations.
  8. Additional Information
    8.1. Provide any further details that demonstrate your ability to fulfill this contract (e.g., extra warranties, local assembly capabilities).

3.3. RFQ Lot (Template)

Lot Name: “Lot 1 – High-Efficiency Ergonomic Office Chairs”

  1. Overview & Scope
    • Supply and delivery of 100 high-efficiency ergonomic office chairs to Our Company AB warehouse in Stockholm, Sweden.
    • Chairs must conform to the following specifications:
  2. Technical Requirements
    2.1. Ergonomic Design: Adjustable seat height (min 40 cm to max 52 cm), lumbar support, 360° swivel.
    2.2. Materials: Mesh back, pneumatic seat adjuster, five-star nylon base with castors.
    2.3. Warranties: Minimum 5-year warranty on mechanical parts; 2-year warranty on upholstery.
    2.4. Certifications: CE marking; ISO 14001 compliance.
  3. Commercial Terms
    3.1. Currency & Pricing: Provide unit price in EUR, including all duties and VAT.
    3.2. Quantity Breaks:
    – 1–50 chairs: base unit price.
    – 51–100 chairs: 5% discount on base unit price.
    3.3. Payment Terms: Net 60 days from invoice receipt.
    3.4. Delivery Terms: Delivered DDP to Stockholm warehouse (Incoterms 2020).
    3.5. Lead Time: Maximum of 8 weeks from Purchase Order (PO) date.
  4. Evaluation Criteria
    • Price (50%): Weighted to total landed cost (including delivery).
    • Technical Compliance (30%): Score based on how closely specs are met.
    • Sustainability & Warranty (20%): Bonus points for extended warranties (>5 years) and recycled/eco-friendly materials.
  5. Submission Instructions
    5.1. Complete the Pricing Template (Excel) attached.
    5.2. Upload technical data sheets for the proposed chair model.
    5.3. Confirm acceptance of delivery terms in writing.

3.4. Reverse Auction Setup (Template)

Once RFQ submissions are evaluated and short-listed (e.g., top 5 suppliers), set up the reverse auction in Market Dojo:

  1. Auction Parameters
    • Start Price: Use the average of the top three RFQ prices as the initial bracket.
    • Bid Decrement: Allow bids to decrease in €2 increments.
    • Auction Duration: 30 minutes total, with a 5-minute auto-extension window if bids come in during the last 2 minutes.
    • Bid Visibility: Show only rank and price delta (e.g., “You are €50 above the lowest bid”).
  2. Rules & Instructions to Suppliers
    • The auction will open on August 1, 2025, 10:00 CEST.
    • Suppliers must be logged into Market Dojo at least 10 minutes prior to the start.
    • Each supplier may place unlimited bids during the auction window.
    • If a new bid arrives in the final 2 minutes, extend the auction by 5 minutes to prevent last-second sniping.
  3. Post-Auction Steps
    • Identify the winning supplier (lowest valid bid).
    • Perform a final compliance check (verify that bid meets technical and contractual terms).
    • Issue the Purchase Order (PO) to the winner and send regret notices to non-winners.

4. Tips for Crafting Effective ChatGPT Prompts

  1. Specify Document Structure
    • Always outline how you want the AI to format its response.
    • Example: “Generate a Pre-Qualification Questionnaire with at least 8 questions, each including the rationale for asking it, and group them under ‘Company Info,’ ‘Financials,’ ‘Certifications,’ and ‘Environmental Practices.’”
  2. Define the Audience and Style
    • Mention whether this is for suppliers who may be non-native English speakers, small businesses, or large corporations.
    • Example: “Write an Invitation Letter in clear, concise English aimed at small to mid-sized European furniture suppliers.”
  3. Ask for Compliance Checks
    • Instruct ChatGPT to verify whether a draft includes essential contract clauses (e.g., “Check that indemnification, confidentiality, and data privacy clauses are present and compliant with EU law”).
  4. Request Industry-Specific Language
    • Incorporate jargon or acronyms relevant to procurement (e.g., “Include references to Incoterms 2020, DDP, and LTIFR”).
  5. Iterate & Compare Versions
    • After generating a first draft, request variations: 1. Provide Version A: Emphasizing sustainability criteria. 2. Provide Version B: Focusing primarily on cost savings. Compare the pros and cons of each version in a bullet list.
  6. Use AI to Anticipate Supplier Questions
    • Example Prompt: “Based on this RFQ draft, what clarifying questions might suppliers ask? Provide at least five potential questions and suggested answers.”

5. Emphasizing Trial & Error

  1. “Fail Fast, Learn Fast” Mentality
    • Encourage students to generate multiple AI drafts quickly, then refine the one closest to requirements.
    • Expect initial drafts to be incomplete; use each iteration to uncover missing details.
  2. Track Changes Systematically
    • Maintain a simple naming convention (e.g., RFQ_v1_AI, RFQ_v2_RevisedByTeam).
    • After each significant AI-driven change, run a quick checklist:
      1. Does it cover all technical specs?
      2. Is commercial language clear (pricing, payment, delivery)?
      3. Are evaluation criteria unambiguous?
  3. Gather Peer Feedback
    • Share AI-generated drafts with classmates to get fresh eyes on clarity and compliance.
    • Combine peer feedback with AI suggestions to improve quality.

6. Conlusions – E-sourcing event

Prepare a discussion on:

  1. Designing a Complete E-Sourcing Event with Market Dojo and AI support
  2. Leverage AI for Faster, More Accurate Drafts
  3. Understand the Competitive Advantages of E-Sourcing/E-Auction
General sourcing process and assessing current situation in step 2
General sourcing process

Supporting material

Courses:

Blog posts:

Note: Illustration to case “Designing an E-Sourcing Event with AI Support” was created by SORA on June 1, 2025.

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