Flex Bids from the Sponsor's View
In the following example, ABC Company's current bid for Lot 4 is $890.00, which is higher than the current lowest bid for this lot of $885.00 (3). Also, ABC Company is tied for second place on Lot 4. They do not want to lower their bid for lot 4 because the sponsor can decide to award different lots to different bidders, but they would give a discount on Lot 4 if awarded the business for all lots.
The best FlexBid that any bidder in this example is willing to place for Lot 4 (assuming they are awarded all of the business) is $855.00 (2), and the best independent bid on lot 4 is $885.00. If the buyer chooses to pick bidders independently, the best the buyer can do is buy the printer ink at $885.00 per case; but, if the buyer is willing to award lots 1, 2, 3 and 4 to a single bidder, they can get the printer ink at $855.00 per case.
NOTE: The Low FlexBids (2) are displayed as thousands of dollars because the printer ink is actually priced per case, and there are 100 cases.
NOTE: The FlexBid lot calculates the current low bid applied to Lot 4 if the percentage discount is utilized.
ABC Company is using the default selections for FlexRank (1) lot selections, so their FlexRank rankings (4) are NOT taking into consideration any FlexBid discounts. They are actually in fifth place for the entire project (not including FlexBid discounts.)
ABC Company's goal is to place a total package bid on Lot 5 to try to win all of the business, but still maintain good margins on Lot 4 independently. To accomplish this they will:
- Select Lot 5 for bidding by clicking the Total Package link.
- Select the Lot Rank link from the Bid History View. This changes the ranking at the bottom of the window (4) to take into consideration the FlexBid discounts.
The Result:
The first thing to notice is that the best total package bid from any bidder at this time is $196,479.00, while ABC Company's aggregate bid is now at $236,000.00 (3). Therefore, they have some room to work with. The company's aggregate ranking for all lots is fifth, and this is due to the fact that others have placed FlexBid discounts on Lot 5 and they have not yet placed any discount. Thus, their bid for Lot 5 is a 0% discount, and their calculated bid (by automatically multiplying all of the lots by the estimated units and adding the lots together) is $236,000.00 (3). The bidder can see in the FlexBids area (2) that none of their bids have a percentage discount affecting them. Let's say they would like to place a bid for a 10% discount, so they will type "10" in the Place Your FlexBid % Discount box, then click Submit.
Because of their FlexBid, ABC Company has a better chance at winning all of the business. If they are awarded all of the lots, then they are willing to supply the printer ink for $801.00 per case (1), but they have only committed to provide them separately for $890.00 per case. They are also the second lowest bidder for the entire package (3).
NOTE: If ABC Company wants to continue improving their overall ranking for all lots, but do not wish to give a larger discount, they can lower their item bids in each lot separately.
FlexBids from the Bidder's View
The following example shows what a bidder sees during a Live Event when placing a bid on a FlexBid lot.
- Low FlexBids: This area (1) shows the bidder what his or her bid for each lot would be if the FlexBid discount is implemented. This discount would only be applied if the supplier was awarded all lots in the "5. Total Package" (FlexBid) lot.
- Bids: This area (2) is where the bidder's current discount is displayed. He or she may increase the discount if desired by typing a new discount in the FlexBid % Discount box and clicking Submit.
- Bid History View: By selecting Lot 5, Total Package (FlexBid lot), the Bid History Lot Rank view (3) shows the bidder's current rank for all lots including the FlexBid discount. In this example, ABC Company is ranked 2nd for winning all of the business with the 10% discount.
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