Stimulate competition fast, save time driving down cost and maximise procurement productivity with Mercato Auctions.
Whether your sourcing strategy considers eCatalogues, eTendering tools or Auctions to identify best priced products or services for purchase, Mercato has lifted the lid on a new dimension of efficiently transacting with suppliers. A fully automated and hosted Reverse Dutch Auction.
This incredibly powerful and complex process is delivered simply through Mercato’s hosted Auctions tool and takes all the cost, duplication of effort and time out of the auction process whilst demonstrating absolute compliance and maximum value from your supplier base. The Reverse Dutch auction reigns power to the buyer’s arm and only allows price to go one way – down!
This approach can unlock huge savings for large multi-site or global organisations, buying groups, government or unrelated organisations looking for collaborative buying power in the same market. It drives healthy volume sales for suppliers and ultimate value for buyers.
The Mercato Auctions Tool optimises all the aspirations of an auction but quicker and easier. It facilitates standard Open Auctions, Reverse Auctions and Reverse Dutch Auctions.
Powered by CIPS approved technology, Mercato’s uncomparable focus on scaleable supply chain Data Management enables total automation of the most complex of tasks on the wish list of business and procurement leaders.
Combine this with Mercato’s Auction architecture with its intuitive user interface and SaaS mentality, delivering value without the overhead, customers can unlock cost reduction fast.
The tool uses a mix of automated rules and algorithms surfaced for maximum user experience to host and manage the entire process through a web-based portal within any time frame.
Uniquely Mercato can offer three types of auction:
- Standard Open Auction - the seller’s protocol is for buyers to bid up from an initial price on a specified product until auction deadline close or no more bids are proffered.
- Reverse Auction - the buyer takes control of the auction and invites suppliers to bid up against each other to win the business on a specific product or service.
- Reverse Dutch Auction
End users simply publish a product list or spot buy with quantities required at the open market rate and timescales using a simple eRFQ.
Mercato Auctions aggregate buyer demand throughout a given time period on specific products at the open market rate. This creates volume demand for products that can then be automatically communicated back out to the prospective supplier base, which is then invited to take part in a reverse auction to win the business and give buyers ultimate value.
The Tool invites appropriate reverse auction participants (suppliers) based on matching their profile data and IT buyers’ order requirements.
Once engaged the ‘Dutch’ element sees suppliers bid prices down from the previous open market rate to win the business.
The Auctions tool evaluates all the bids and calculates the best supplier and price. This data is passed to buyers for approval and ERP system communication for PO numbers and financial cross checks.
Orders are sent to the supplier’s ERP system for delivery.
Mercato Auctions provides for tracking, reporting and forecasting.
This is currently fully automated and operational daily in the highly volatile IT vertical across over 2,500 suppliers, where the auction closes at 5pm and orders are processed through supplier ERP systems by 5.15pm.
Homepage (Supplier role)
Homepage (Purchaser role)
Request for Quotation
Supplier Request for Quotation
Back Orders
Automatic Order Confirmation
Mercato can either work with you to integrate with your back office and financial systems or deliver an integrated P2P solution to close the loop on fully compliant and auditable buying.
As a market-leading subscription based SaaS solution that integrates and extends common ERP systems, the Mercato Application suite is modular and tools can be bolted on to meet specific demands. This overall end-to-end solution is hosted by Mercato and can integrate into existing FMS and back office systems if required.
The solution can be ‘live’ rapidly without hardware or software installation costs and there are no maintenance costs.
The solution is highly intuitive but if needed, Mercato can offer implementation assistance and training to ensure swift deployment, company-wide adoption, and quick ROI.
