What is open bidding in SAP LOD-ESO - Sourcing OnDemand?

SAP Term: open bidding

• Component: LOD-ESO

• Component Name: Sourcing OnDemand

• Description: A type of auction bidding in which bidders must meet or exceed their own most recent bid in both quantity and bid price, but do not have to beat the current leading bid.

Smart SAP Assistant

• Key Concepts: 
  Open bidding is a feature of SAP LOD-ESO Sourcing OnDemand that allows buyers to solicit bids from multiple suppliers for goods and services. This process is also known as reverse auctioning, as suppliers compete to offer the lowest price for the goods or services. The buyer can then select the supplier with the best offer. 
  
  How to use it: 
  To use open bidding, buyers must first create a sourcing event in SAP LOD-ESO Sourcing OnDemand. This event should include all relevant information about the goods or services being requested, such as quantity, delivery date, and payment terms. Buyers can then invite multiple suppliers to participate in the event. Suppliers can submit bids with their offers, and buyers can compare them to select the best one. 
  
  Tips & Tricks: 
  When using open bidding, buyers should ensure that all suppliers are given equal opportunity to submit bids. This can be done by setting a deadline for bids and providing clear instructions on how to submit them. Buyers should also consider setting a minimum bid amount to ensure that suppliers are not submitting unreasonably low offers. 
  
  Related Information: 
  Open bidding is just one of many features available in SAP LOD-ESO Sourcing OnDemand. Other features include request for quotation (RFQ), request for proposal (RFP), and supplier management. These features can be used together to create a comprehensive sourcing strategy for buyers.