This guide provides a complete, step‑by‑step walkthrough for setting up an English Auction in eSourcing. In an English (reverse) auction for procurement, the platform displays the current best (lowest) bid to all suppliers. Participants may submit a new bid only if it improves the current best bid (i.e., a lower price). The auction closes with the lowest compliant bid as the winner.


Preconditions & When to Use

  • Competition: ≥ 3 suppliers willing to compete (ideally more).
  • Transparency: All auction documents/information are shared equally with all suppliers.
  • Comparability: Suppliers can meet the same requirement profile (quality, specs, delivery terms).
  • Fairness: The winning supplier will be awarded based on the results and rules.

Pre‑Setup Checklist (prepare before creating the auction)


A. Create the Auction from the RFX (to maintain articles and enable awarding)

To conduct awarding after negotiations, create the auction from the existing RFX. This preserves the link between the Demand Specification and the auction positions, ensuring the same articles/positions  are maintained in the system. It also enables the awarding workflow to run correctly after the auction.
Why this matters
  • Maintains article continuity: keeps the original position IDs and master data so the system recognizes the same items across RFX → Auction → Awarding.
  • Enables awarding: Awarding is recognized by downstream systems (e.g., MDW) only when it is executed from the originating RFX project linked to the auction.


B. Create a Standalone Auction

Recommended for GNFR buyers or for buyers strictly interested in price negotiation via Auction only.
This option is suitable when there is no need to maintain article continuity or perform awarding after the auction.


  • From the Menu navigate to: Sourcing- Auction List
  • Click New project 
  • Select Start with empty auction and Apply




Step‑by‑Step in eSourcing


1.  General Data


1.1. General Information


  • Project title: Clear, specific name (e.g., ENG Auction – [Material/Category] – [Month YYYY])
  • Version: Live
  • Business units: Select participating countries
  • Material groups: Select COMS for the articles
  • Click Save.

1.2. Project Team

  • The internal participants from the RFX are copied automatically.
  • Click Add to invite colleagues if needed.
  • Note: Verify user roles and adjust where required.



1.3. Supplier Circle
  • All RFX suppliers are copied automatically.
  • Click Add to invite more suppliers.
  • Important: If awarding will follow the auction, ensure all suppliers are present in the RFX (not only in the Auction).


1.4. Documents

  • All RFX documents are copied into the Auction.
  • You may Upload additional files; Update the GC (rules) if needed.
  • Note: Non‑GC documents copied from the RFX may need supplier access re‑assignment


2.  Auction Structure


2.1. Review each article/position → click Open to edit:
  • Min bid change (decrement/increment)
  • Max bid change (if used)
  • Decimals (price precision)
  • Other position settings
    Click Save.
  • Hints: For bulk updates, Export the Excel template, fill in the data offline, then Import to upload many rows at once. 


Add new positions (standalone auctions):

  • If the auction was created as standalone (not from an RFP/RFX), use New price line item to create positions (articles).
  • Enter the Article name, Quantity, Unit, and any Comments, then Save.


2.2. Access Rights

  • By default, all invited suppliers can see all articles.
  • Restrict or grant access per supplier if needed; click Save.


3.  Auction Settings


3.1.  Auction Definition

  • Auction Type: English
  • Bid Direction: Down for buying (reverse auction—lowest wins)
  • Bidding Option: Parallel: Suppliers bid on multiple positions at once 
Optional toggles (use as needed):
  • Calculate minimum bid change – system enforces min decrement/increment
  • Deny 0 as a bid value – prevents zero bids
  • Calculate take‑lead – computes the price required to move into the leading position.
  • Show copy value button – enables copy of previous value for faster entry


3. 2. Competitive Settings

  • Default options are pre‑selected; adjust if needed (e.g., rank visibility, best‑bid visibility, bid anonymity).


 3. 3. Milestones & Overtime

  • Set Start date/time and End date/time.
  • Overtime (Optional): Set to Yes to extend when bids arrive close to the end.
    • Example: extend 5 minutes after each qualifying bid near closing.
  • Refresh rate: 20–30 seconds recommended.
  • Click Save.



3. 4. Starting Prices

  • Define starting prices per supplier and per article.

  • Click Display Settings → Place values for all suppliers if you want the same starting price across suppliers.

  • Click Open, enter values, then Save.

  • Starting prices can be left empty; suppliers will still be able to bid when the auction starts.



3.5. Bidbox Layout

  • This is the supplier view during bidding.
  • Show/hide columns to match what you want suppliers to see (e.g., Best Bid, Rank, Min Change, Time Left).


5. Auction Status & Publish


Review Auction Status—resolve any red errors (messages explain what’s missing).
Click Publish to set the auction Online.


Recommendation: Publish the auction a few days in advance—ideally 3–5 days before the bidding start.

This buffer allows suppliers to:


  • Analyze the documents (GC, requirement profiles, articles, starting prices).
  • Confirm access and resolve any login/account issues (password resets, user rights, SSO).
  • Ask clarifying questions ahead of time, ensuring a smoother bidding start.


Note: Publishing early does not start the bidding; the auction will open at the configured Start date/time. The system also sends an automatic reminder 30 minutes before bidding begins.


What suppliers receive:

  • An email invitation with access to the auction.
  • They can accept documents, review articles and starting prices.

Lifecycle:

  • At the start time, status changes from Online → Bidding automatically.
  • Monitor via Auction Cockpit or Auction Analysis.



See also: How to monitor the auction during the bidding - will come


If you need further assistance do not hesitate to Contact us.