Have Different Response Price Decrement for Each Line in Auctions

In auctions, suppliers often submit multiple bid revisions to compete for business. Negotiation owners require, either that the supplier's revised bid price for a line be lower than the best bid, or lower than their previous bid.

This is enforced by specifying a decrement as an amount or a percentage, which is applied to all lines in the auction. But when auction lines have significant price variation, there's a need to apply an appropriate price decrement for a line based on the price of that product or service.

With this feature, you can now set a different decrement for each line. This will ensure that suppliers bid with a lower price than their previous bid or the best bid for each line according to the line's specified decrement. If suppliers fail to reduce their bid price by the specified line decrement, they will be alerted with the exact amount by which they need to reduce the price on each line.

Consider these when you have different response price decrement for each line in auctions:

• To use bid price decrement for each line in auctions, in the negotiation style, select the Line level price decrement check box.

• Line level price decrement is enforced even when the supplier uses proxy bidding.

• Proxy bidding enables the supplier to have the application automatically rebid on their behalf by a set amount when a better bid is submitted by another supplier. The supplier can specify a proxy decrement by which the bid price is automatically reduced in order to beat the competing bid. The proxy decrement must be equal to or greater than the minimum line decrement specified for that line.

• For an auction with line level decrement, you can renegotiate an agreement, create an amendment for an auction, create a new round, and duplicate an auction.