1. Reverse Auctioning at the University of Pennsylvania Purchasing Services May 2003

2. Reverse Auction Overview Tool to secure Competitive Bids Tool to secure Competitive Bids Utilized for Larger-Scale Goods & Services Utilized for Larger-Scale Goods & Services Offers are collected online in real-time Offers are collected online in real-time Supplier Participation by Invitation Only Supplier Participation by Invitation Only Short Duration Auctions to maximize downward price pressure Short Duration Auctions to maximize downward price pressure Interest and support came from senior management Interest and support came from senior management

3. Event Process Overview Opportunity Analysis Opportunity Analysis Aggregate demand, create product specifications Aggregate demand, create product specifications Evaluate terms & conditions Evaluate terms & conditions Identify potential suppliers Identify potential suppliers Begin Development on RFQ/RFP Begin Development on RFQ/RFP Auction Ramp-up Auction Ramp-up Perform Auction Perform Auction Execute Contract Execute Contract

4. An end-to-end solution Qualify Suppliers Prepare Proposals Send & Receive Proposals Negotiate Price/Terms Select Winner(s) Evaluate Proposals Need Identified Agreement Negotiated -Performance & Qualification Scoring -Online Questionnaire -Supplier Self- Evaluation -RFQ Development Wizard -Multiple Line Items and Lots -Document Library -2-Way Collaboration -Send/ Receive Documents -Electronic Q&A -Receive Proposals Electronically -Proposal Scoring -Interactive Discussions -Electronic Bidding -Reverse Auction -Electronic T’s & C’s Negotiation -Best Value Awards -Award to Multiple Suppliers -Automatic Win/Loss Notifications

5. Benefits Easy to use tool to streamline the procurement process Easy to use tool to streamline the procurement process 100% web-based 100% web-based Streamlines the communication process Streamlines the communication process No additional time is needed to create the same documentation as in the past No additional time is needed to create the same documentation as in the past Self-Service and Buyer-Centric Self-Service and Buyer-Centric Average auction savings 23% & 75% cycle time compression Average auction savings 23% & 75% cycle time compression

6. Initial Event HVAC Filters HVAC Filters PACC Participation PACC Participation Develop RFP with all schools participating schools requirements Develop RFP with all schools participating schools requirements Ramp-up all suppliers for pre-bid and auction event Ramp-up all suppliers for pre-bid and auction event Live summary of details on the site Live summary of details on the site

7. Product Demonstration PROCURI.COM PROCURI.COM

11. Conclusion Please visit the Penn Purchasing Services Reverse Auction web site for additional information: www.purchasing.upenn.edu/about/bidding.php www.purchasing.upenn.edu/about/bidding.php