The online reverse auctions offer the companies an additional instrument to the end of:

Managing the negotiation that winds-up the sourcing process;

Broadening the selling opportunities from the view point of vendors invited to bid.

The online auction lines up the buyer and the invited suppliers in a virtual face to face, simultaneously, from their respective computer monitors, with no geographical boundaries, amidst total security, full transparency and equal opportunities.

The online auction rewards the competitive capacity of the participants and showers a number of advantages on both the buyers and suppliers!

The auction itself is the terminal stage of the traditional sourcing process.
The Pizzarotti Group:
Defines the technical and commercial prescriptions of supply and sets the auction date
Chooses and invites the suppliers
Establishes the auction rules (awarding parameters, contract conditions, etc ) and notifies them to the invited suppliers, who can also view these regulations online through their respective personal and reserved area on the sourcing portal of Pizzarotti & C. S.p.A.
Should it be deemed necessary, a preliminary online Request for Quotation is submitted to the invited suppliers

On the set date, the buyer and the invited suppliers access the auction engine, through their respective personal area on the Pizzarotti & C. S.p.A. sourcing portal... and the simultaneous negotiation on - line thereby kicks off:
The suppliers forward their quotations, which remain anonymous
All the participants follow the progress of the auction from their respective computer terminals
at the pre-set moment, the auction ends, in compliance with the awarding conditions previously established

D. What should I do in order to take part in a Pizzarotti & C. S.p.A. reverse auction?
R. A mandatory requirement is the qualification.
To this end, please fill in the dedicated form available on the website, under the frame "Qualification"..
D. I would like to try the on - line auction; what I dread is losing that "direct contact", so precious for the quality of a relationship
R. Personal relations are the ground for a sound rapport with customers. The on - line auction does in no way get rid of them, just the contrary! Since the on - line process cuts down the time spent on the negotiation phase, the buyer and the seller can actually dedicate a greater amount of resources to both pre and post-sales.
D. Which are the main parameters of a reverse auction?
R. The three principal features are the "base price", " reserve price" and the "minimum decrease". The "base price" normally reflects the market rate of the goods that the buyer wants to purchase. During the auction, quotations higher than the base price shall not be accepted.
The "reserve price" is the amount at which the buyer undertakes to purchase the goods; it therefore is a figure below the base price. The "minimum decrease" is the least difference spanning two consecutive quotations.
More questions
Other queries

D. Is the auction mechanism compatible with the award system envisaged in framework agreements?
R. Surely it is. You just need to specify all the contract conditions in the documents made available to all the invited suppliers.
D. Does the on - line auction assure confidentiality?
R. It certainly does. Access to all documents concerning an auction is reserved only for the invited suppliers, through their respective personal area on the Pizzarotti & C. S.p.A. sourcing portal, access to which is restricted and protected. Only the buyer and invited suppliers may follow, exclusively via their respective personal folder, the progress of an auction and accordingly intervene with quotations. Furthermore, the suppliers cannot view the identity of other participants in the course of an auction.
D. How long should I wait to know whether the auction has been awarded to me?
R. The contract governing auctions states that, reserve price being exceeded, the auction must be awarded within a maximum of 15 days following its termination. The winning bidder shall be notified via e-mail.

The entire process unfolds on - line, between the Pizzarotti Group and the qualified suppliers.
Pizzarotti Group creates the request online:
it sets the deadline within which quotations should be submitted;
it defines the technical and commercial requirements of supply, adding specification documents (pictures, technical drawings, databases...) where necessary;
it sets the parameters to be applied in order to compare quotations;
it selects suppliers for RFQ mailing;
send the request

The selected suppliers:
receive the request in their respective personal area on the Pizzarotti Group purchase portal;
submit a quotation, providing the information needed for comparison;
attach specification documents (pictures, technical drawings, databases...) where requested;
they submit a quotation, which the Pizzarotti Group can view through its own area on the portal
Once all quotations have been submitted, the Pizzarotti Group can kick off the awarding process. In this case, all suppliers shall receive an e-mail notification pertinent to the outcome of the auction.

D. What should I do in order to use the online Request for Quotation facility?
R. It's mandatory to qualify: please fill in the dedicated form available on the website, under the frame "Qualification".
D. Why should I avail of the online RFQ rather than keep on doing business the way I've always done?
R. Because this solution helps in simplifying and rationalizing traditional RFQ process, by significantly shrinking time and most of all, costs (telephone contacts, sending documents, etc.). Moreover, it facilitates quotations comparison and automates storing operations of quotations received in the personal area of Pizzarotti Group sourcing portal.
D. If I submit an online request for quotation, can I eventually change it?
R. In case of a RFQ on - line, it is possible to create and submit a new quotation. Regarding a blind tender RFQ, every supplier may submit one quotation only but can modify its content up until the date and time set by the buyer as deadline for delivering quotations.
D. I've handed over a blind tender RFQ and would like to alter its content. Is that possible?
R. Yes, up until 24 hours before the deadline set for receipt of quotations from suppliers.

The Pizzarotti Group has been availing of online auctions and electronic RFQs since 2003 to the end of enhancing both the effectiveness and the efficiency of its sourcing processes.
The online auctions allow for the procurement of any kind of goods and services, among which:

	simple and standard materials: electric cables, iron alloys, rods for concrete, fibreglass pipes, sheets, steel beams, prefabs, strands...
	machinery and equipment: motor-vehicles, lifts, cement mixing machines, fork lift elevators, heating plants, routers, construction site cabins, industrial packaging plants, concrete mixers...
	services: maintenance of electric boards, just-in-time delivery service, equipment rent....
	turn-key tenders: civil works, renovations, fuel distribution, emergency staircases, conveyor belts, plant carpentry, tyres feeling plant

In the auction-creation stage, the buyer defines and forwards to vendors all supply specifications, awarding parameters and types of sourcing contracts (simple supply, framework agreements, tenders with prices calculated on quantity or flat-rate, leasing, supply for works ).