How do we validate a platform quickly?

Run a 2–4 week pilot with real categories and measure build time, supplier self‑registration rate, and export/report quality.

What is most critical for a successful supplier onboarding?

Frictionless registration, clear auction rules, a mock event path, and responsive multilingual support.

How do we know the platform is ready to scale?

If the pilot shows fast event setup, ≥90% self‑registration success, clean automated exports, and stable SSO/ERP integrations, it is scale‑ready.

Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

How to Run a Live Auction in Procurement

As taught in the E-Auction Course for Procurement Professionals / ★★★★★ 4.9 rating

Table of contents

3 Key Steps to Take Before Running a Live E-Auction
4 Auction Designs to Run a Live Auction
Supplier Tactics vs. How to Counter Them
9 Key Points to Take Note Of During the Live Auction
Conclusion
Frequently asked questions

How to run live auctions in procurement?

Plan and prepare thoroughly before the live auction to ensure a smooth process.
Apply rules consistently and monitor activity throughout the live auction.
Handle technical issues quickly to keep the live auction fair and transparent.

3 Key Steps to Take Before Running a Live E-Auction

Live e-auctions require more than simply opening a bidding platform; their success depends on the work completed beforehand.

That’s why it’s essential to clearly define the preparation steps to ensure a controlled, transparent, and predictable auction experience.

1. Preparation and setup as the foundation

Preparation and setup form the core foundation of a successful live e-auction. By the time the auction begins, most of the critical work should already be completed: the platform is chosen, the rules are aligned, suppliers are trained, and trust in the process is established.

The live event is not the moment for improvisation but for disciplined execution of a well-designed plan, similar to guiding an aircraft after all pre-flight checks are completed.

2. Ensuring clarity and readiness for all participants

A strong setup ensures that both the procurement team and suppliers understand how the auction will run, what rules apply, and what technical conditions must be met.

This includes completing mock sessions to confirm supplier logins and test bids, making all rules visible, loading reserve prices and thresholds, and preparing backup communication channels.

3. Anticipating behavior and maintaining control

Careful preparation also helps anticipate supplier behaviors, allowing the procurement manager to stay calm, apply the rules consistently, and maintain fairness. With roles clearly assigned,

5 Auction Designs to Run a Live Auction

Effective auction design is key to a successful e-auction. Clear structure and rules minimize manipulation, maintain fairness, and ensure transparent, predictable competition for all participants.

1. Dynamic Closing and Auto-Extend Rules

One key design choice is dynamic closing and auto-extend rules. These mechanisms ensure that bids arriving in the final seconds automatically trigger additional time, preventing shock drops and maintaining a steady flow of competition. This approach discourages suppliers from waiting until the last moment to place strategic bids and keeps the process predictable.

2. Multi-Round Auctions

Multi-round auctions are another effective strategy. By allowing multiple rounds of bidding, suppliers can adjust their offers based on updated information, reducing the incentive for manipulative behavior and creating a more accurate reflection of market value. Multi-round formats also encourage steady engagement and make the auction process more resilient to tactics like bid shading.

3. Multi-Criteria Scoring

Multi-criteria scoring helps demonstrate that value is more than just price. By considering additional factors, such as quality, service levels, or delivery times, suppliers are incentivized to submit well-rounded offers rather than focusing solely on undercutting competitors. This scoring approach supports fairer comparisons and reduces the opportunity for unrealistic bidding.

4. Transparency and Clear Rules

Transparency and clear rules form the foundation of a smart auction. When all participants understand the rules, thresholds, and visibility settings, misunderstandings are minimized. Clear rules, combined with structured participation guidelines, prevent tactics such as collusion, fake competition, or selective lot bidding from undermining the auction.

5. Supplier Training and Mock Sessions

Finally, supplier training and mock sessions play a critical role in preparation. By familiarizing suppliers with the platform, rules, and expected behaviors, potential errors or confusion during the live event are greatly reduced. Training, combined with monitoring and an audit trail, builds accountability and ensures that the auction operates smoothly.

Supplier Tactics vs. How to Counter Them

Tactic

Bid Shading (Last-Second Bidding)

Collusion and Price Signaling

Strategic Lot Selection (Bundling or Avoidance)

Fake Competition (Multiple Accounts or Partner Companies)

Deliberate Delays (Timing Manipulation)

Unrealistic or Misjudged Bidding

Description

One of the most common tactics is bid shading, waiting until the final seconds to submit a significantly lower price. This puts pressure on competitors and can disrupt the rhythm of the auction. Without tools like dynamic closing or auto-extend, late bids can distort the outcome and reduce transparency.

Some suppliers may attempt to coordinate bids or send coded price signals to avoid real competition. These behaviors undermine fairness and can be difficult to detect without anonymous bidding and careful monitoring. Maintaining blind auctions helps reduce the risk of collusion.

Suppliers may bid aggressively only on high-margin lots while avoiding less profitable ones, shaping where competition happens. Clear participation rules and proper lot structuring help ensure coverage across all required items.

A vendor might attempt to create artificial competition by registering additional accounts or using partner organizations to inflate the number of bidders. Verifying supplier identities and approving participants manually is essential to prevent this manipulation.

Suppliers may intentionally slow responses to influence the auction timeline, trigger extensions, or create confusion. Strong timing rules, automated countdowns, and strict enforcement counter these attempts effectively.

Sometimes suppliers simply misjudge the market and place unrealistically high or low bids. Although not deliberate manipulation, it can still destabilize the auction. Providing clear benchmark data during preparation helps anchor expectations and encourage rational bidding.

How to Counter It

One of the most common tactics, last-second bidding, is neutralized through smart auction design. Dynamic closing or auto-extend rules ensure that every late bid triggers extra time, preventing “shock drops” and keeping competition alive. This simple mechanism removes the advantage of waiting and encourages steady, transparent bidding. When bidders know the auction won’t end abruptly, they behave more predictably.

To counter collusion or price signaling, anonymity and monitoring are essential. Keeping bidder identities hidden prevents coordinated moves, while watching for unusual bid patterns helps detect potential manipulation. Varying supplier participation across rounds also reduces the ability of vendors to anticipate who they are competing against. With anonymity preserved, coordinated tactics lose their effectiveness.

Suppliers who attempt strategic bundling or avoid certain lots can be managed through proper lot structure and participation rules. Multi-lot auctions encourage suppliers to bid across related items, while predefined requirements ensure that all critical lots receive attention. By designing the event so that value is spread across items, not concentrated in a few high-margin ones, you maintain competitive pressure where it matters.

Even fake competition, such as using multiple accounts or partner companies, becomes ineffective when you control access. Verifying supplier identities, approving participants manually, and restricting logins to trusted partners prevent artificial inflation of the bidder pool. When the entry gate is secure, the auction remains authentic.

For delay tactics, the solution is discipline. Automated countdowns, strict timing rules, and consistent enforcement prevent suppliers from slowing the event to create confusion. If a genuine technical problem occurs, a short, neutral pause handled according to predefined rules keeps the process transparent and fair. When timing is predictable, delay strategies lose their impact.

Finally, unrealistic bidding, whether too high or too low, can be minimized by providing market benchmarks in advance. When suppliers understand historical pricing and competitive ranges, they make more rational decisions. This helps stabilize the auction and prevents disruptive bid swings.

9 Key Points to Take Note of During the Live Auction

Live e-auctions require focused, disciplined execution once the event begins. Below are the key points you should keep in mind to ensure the auction runs smoothly, fairly, and according to the rules you designed in advance.

1. Execute the plan without improvisation

By the time the auction begins, all major preparation work is complete. The live event is the moment to calmly execute the predefined plan, similar to guiding an aircraft after pre-flight checks are done.

2. Stay alert for supplier tactics

Even in a well-prepared event, last-second bids, collusion attempts, or other manipulative behaviors can occur. Maintaining fairness requires awareness and consistent application of the rules.

3. Use auction mechanics to keep competition steady

Dynamic closing, auto-extend rules, and multi-round formats help neutralize last-second bidding and maintain continuous, transparent competition.

4. Monitor the platform closely

Watch bid activity, timing signals, and unusual patterns. Prompt action by the facilitator helps prevent issues from escalating and maintains control of the event.

5. Manage technical or procedural disruptions according to predefined rules

Frozen timers, delayed bids, or platform issues should be handled through neutral pauses, refreshes, or automated alerts to maintain transparency and fairness.

6. Communicate consistently and neutrally with suppliers

Provide calm, neutral instructions in chat, remind suppliers of rules like minimum decrements, and maintain a professional tone throughout the event.

7. Document the end of the event properly

Review the bid log, communicate outcomes clearly to winners and non-winners, finalize contracts promptly, and ensure all decisions are recorded.

8. Conduct a fair debrief with suppliers

Explain results, reinforce rules, and close the event respectfully to maintain trust and support participation in future auctions.

9. Host the event and don’t negotiate

The procurement team’s role is to guide the process with discipline, not to negotiate. Calm execution and rule adherence turn potential supplier tactics into manageable situations.

Conclusion

Running a live e-auction successfully relies on thorough preparation, clear rules, and disciplined execution. Strong auction design, including dynamic closing, multi-round bidding, and transparent scoring, minimizes the impact of supplier tactics.

During the event, the facilitator’s role is to stay calm, monitor activity, and apply rules consistently. Effective handling of technical issues and clear communication builds trust with suppliers.

Ultimately, a structured and fair auction ensures predictable outcomes and encourages supplier participation in future events.

Frequentlyasked questions

What is the facilitator’s main role during a live e-auction?

To host the auction calmly, apply rules consistently, and monitor activity.

How can last-second bids be managed effectively?

By using dynamic closing and auto-extend rules to maintain continuous competition.

What should be done if technical issues occur during the auction?

Apply predefined procedures like neutral pauses or quick refreshes to maintain fairness.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.