Luring the big fish: Automaking's biggest supplier exchange morphs itself from an auction house into the hub of the industry's sourcing transactions - Supplier Business - Global online business-to-business, supplier exchange - Internet/Web/Online Service Information

Automotive Industries, Feb, 2002 by Andrea Wielgat

Procurement Suite -- This is where the auctions take place. But Covisint is also moving into electronic request for quotations (RFQ), post sourcing and contract management.

Supply Chain Suite -- Provides an industry standard for managing a company's inventory and replenishment position. Allows customers to be in constant connection with the entire supply scenario, including monitoring of material flow, releases going out and shipments coming in.

Quality Suite -- Provides advance quality planning applications that allow suppliers to show OEMs how they will provide and ensure quality.

Problem Solver Suite -- Developed with the help of Delphi Automotive Systems, Problem Solver allows a supplier to do problem resolutions (root cause analysis) and then bundle the outcome into any of the OEM's formats to ensure the clearest possible communication.

Collaboration Suite -- allows real-time work on a model by moving product development to the Internet. The system enhances integration among local and global partners and increases communication among all project managers.

Covisint by the Numbers (through 2001)

Auctions

* More than 1,400 online bidding events

* Over $51.0 billion in transactions

Catalogs

* More than 200 catalogs

* More than 2.5 million individual items (SKUs)

* More than 95,000 transactions

Quote Manager/Virtual Project Workspace

* More than 500 individual users

Supply Chain

* More than 2,300 individual users

Registration

* More than 5,000 companies registered

How a Covisint Auction Works

Once a buyer has sent out a request for quotation (RFQ) package and narrowed down their list to three qualified bidders, they log onto Covisint and select the Covisint Auction option from an application box.

The buyer then creates an auction using the site's auction wizard. After selecting a category, auction format and type of auction, the buyer chooses a start/stop time, currency type, opening price and bid decrement.

The buyer enters the three chosen bidders who are then notified with an e-mail message of the auction's specifics.

On the day of the auction, the bidders and the buyer log onto Covisint's auctions application box. A list of items associated with the auction appears along with a window for entering and submitting bids.

Once a bidder enters a bid, a golden gavel appears in the upper right corner of their screen. When a bidder is in the lead, a golden gavel also appears in the lower right corner. It disappears when the bidder loses the lead.

The buyer can watch the bidding process or choose to just see the leading bids.

The buyer and bidders may go through several rounds of bids, which may not end with the buyer awarding the business. The buyer can take the data from the auction and review it before later awarding the bid.

AW