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e-Auction

Participating in an e-Auction means taking part in a real time online price bidding for a good or service requested by Arla Foods. The e-Auction is run through SAP Ariba.

The e-Auction is open for a restricted period of time. When open, invited participants can place bids for the requested good or service. The supplier with the most competitive will be the winner of the e-Auction.

English Auction

is often referred to as a "normal" auction. Suppliers place bids for the required good or service and keep on lowering their bids until time runs out. The supplier with the lowest bid will be the winner of the auction.

Dutch Auction

is also known as "reverse" auction. A low initial price for the required good or service is set by the purchaser. The price then increases gradually until the first supplier accepts the current price and thereby wins the auction.

Japanese auction

Purchaser sets the initial price. The price then gradually decreases and supplier has to accept the price to stay active in the auction. The auction stops when the last active supplier decides to stop accepting the price.

We expect suppliers to

find and appoint a single contact person for e-Auction participation

join the test e-Auction prior to the actual e-Auction to get familiar with the bidding rules of the specific e-auction

clarify all questions about the good or service you are bidding for with your contact person in Arla prior to the e-Auction

call your contact in Arla immediately in case of technical issues during the e-Auction

understand that all bids are legally binding and valid after submission

In return, Arla Foods will

only invite pre-qualified suppliers whom we consider awarding in the e-Auction

communicate information to suppliers timely and equally

ensure that all suppliers compete under the same requirements and follow the same process

award the business based on bids submitted in the e-Auction and based on the stated awarding process

not consider any bids submitted outside the e-Auction