The Technology Xpressions Material Procurement System software program provides the purchasing manager with an easy to use tool to set up and administer a reverse auction. We feel that our reverse auction program can provide a valuable tool in reducing material and labor costs. The package consists of a windows desktop client for administration, a spreadsheet template and a web based auction site, usually http://auction.companydomain.com, or, if more security is desired, a SSL Certificate can be purchased in order to make an encrypted connection to the website.

The administration program allows the purchasing manager/master administrator to input vendors into a vendor list and give other purchasing agents the rights to setup their own auction.

Creating an auction is as simple as creating an excel spreadsheet. A template is used to setup the auction information; item number, description, specification(s), current price and quantity needed. One row on the spreadsheet per item in the auction, there is no limit to the number of items in an auction. Once the template information is filled in, the manager/administrator imports it into the administration program. The administrator gives the auction a name and sets the date and time of the auction. The administrator also has the option to extend the auction for a specified length of time if any vendor bids within the last 10minutes of the auction. Future enhancements slated for development will allow for more import options (such as CSV, ODBC, XML and possible 3rd party application) and a more robust stand alone data entry option.

The administrator invites the vendors and guests that he wants to participate in the auction by simply selecting those vendors from his list. The program issues a login and password good for only that auction, plus other information that the vendor needs to know, such as time and date of the auction. The text of the message is customizable so additional information such as shipping information, FOB origin or destination, terms, delivery schedules and specifications can be included. This would be sent to the supplier by email from within the administration program or can be printed to be sent by mail or fax if the vendor doesn't have an email address. Each auction also has a unique guest password, which the administrator can use to invite guests to observe the auction.

The vendor logs into the auction on the date and time specified and sees the item number, description, specification(s) and quantity needed. The last two columns are current low bid and a box where he can enter a bid. The vendor enters a bid and clicks on the submit button. If his bid is the new low bid the current low bid box's background will turn green and display his bid price.

The administrator or guest would log into the auction and see everything the vendor sees, plus the current price they are paying and all the participating vendors bids, with the low bids in green.

Once the auction is over the purchasing manager/administrator exports the auction results to an excel spreadsheet and can send them to other parties via email. The exported auction gives the results of the auction, with savings, extended savings and each vendors final bid price. Other details are provided such as bidding history for each item.

It is that simple.