Glossary

Specifications: Characteristics that define an element, part, item or service in the best possible way, identifying it in an unique form for the suppliers and bidders who want to participate on reverse auctions, given them the opportunity to place fair bids according to what is requested.
Opening Date : Or Start Date, is the date a reverse auction starts and offers are allowed from suppliers.
Closing Date : Date in which the auction finishes and no additional offers will be received.
Opening Time: Or Start time is the exact time the auction starts (see also time zone of auction).
Closing Time: Exact time when the auction finishes, after this time no other offers will be accepted (see also time zone of auction).
Invitee: Supplier or Seller invited by buyer to a reverse auction of goods or services.
Offer / Bid : Value entered by supplier competing on a reverse auction, always lower to previous competitor, trying to obtain the deal.
PN o Part Number: Manufacturer reference commonly used to define items in a unique way. This is particular important on reverse auctions, since items can be defined very clear using this reference. Manufacturer name is also required together with the PN for complete identification of elements.
RFQ auction: On reverse auctions refers to auctions created by buyers with the intention to obtain the lowest price possible as base quotation for a subsequent purchase order or for budgeting purposes. The auction is not decisional or imply any commitment of the buyer or the company represented by the buyer. Frequently used by companies which Procurement Departments require to issue a regular purchase order through their ERP System (including all approval instances).
Decisional auction: Reverse auctions where the buyer has the liberty to accept the lowest price obtained and award the business as soon as the auction is closed (regular persons for instance). Terms and conditions must indicate clearly which type of reverse auction is actually running.
Withdraw Offer: During the auction exist the possibility to withdraw an offer (errors mainly). Withdraw offers is not allowed during the last 5 minutes of the auction.
Reference: Identifier of elements, parts, general goods and service short descriptions.
Void auction: Auction that has not received the expected offers and has been cancelled by buyer with no winner.
Terms and Conditions: In addition to Specs, this is a fundamental part of reverse auctions. Includes all parameters determined by buyer for each reverse auction, defining the characteristic of the business. In order to enter the reverse auction to place bids, all terms and conditions established by Buyer must be accepted by invited Suppliers. It is responsibility of Buyers to appropriate communicate these to Suppliers. They can include without be limited to: Delivery time, Price validity after auction closing (time), delivery place (and conditions Incoterms), type and quality of packaging, transport conditions, environmental recommendations, payment conditions required by buyer, advance payments, deferred payments, warranty, credit conditions, etc....
Token: Unit value at Reverplace, equivalent to USD 10. It is the lowest value required by a Buyer to open a reverse auction.
Base Value : Initial auction amount determined by Buyer who opens the reverse auction. Below this value, Suppliers will offer underbidding prices, until the auction finishes.
Time Zone of auction: It is the time zone location reference where the reverse auction take place. Measured in reference to the Greenwich meridian, no matter where the Supplier is located and how his(her) computer clock settings are, the auction will close for everyone at the same time (Server time together with offset of time zone).