WorldWideRetailExchange, the online trading portal, is developing a code of practice to govern the conduct of internet auctions in a bid to tackle negative publicity.
WWRE director, UK and southern Europe, Fabiano Aguilar, said: “I keep repeating this, it’s not the tool, but the way that it’s used, that has caused problems.
“So we are developing a code of conduct for buyers to ensure
they are using the auctions properly.”
Details are being finalised, but the code is likely to provide assurances to suppliers their anonymity will be preserved and buyers cannot spike auctions with internal bids.
It could also look at how retailers assess potential bidders before an auction, following persistent complaints that suppliers taking part are unable to meet the specifications.
Claims from some UK own label suppliers that retailers were beginning to question auctions as a procurement tool were not supported by WWRE’s statistics, said Aguilar.
“We have 35 to 40 active members using auctions for a whole range of goods, and volumes are going up all the time. Tesco, for example, is still ramping up its auction use.”
Auction volumes at the exchange, which has Tesco, Marks and Spencer and Safeway on its books, topped $6.5bn, representing savings of more than $1bn, he said.
Tools for members such as collaborative planning, forecasting and replenishment and item management were also really starting to take off, Aguilar added.
Tesco will start trialling a collaborate planning tool with selected suppliers via WWRE this year, for example.
This would help Tesco manage events such as major promotions more effectively through sharing more data with its supply base, said Aguilar.
Elaine Watson
WWRE director, UK and southern Europe, Fabiano Aguilar, said: “I keep repeating this, it’s not the tool, but the way that it’s used, that has caused problems.
“So we are developing a code of conduct for buyers to ensure
they are using the auctions properly.”
Details are being finalised, but the code is likely to provide assurances to suppliers their anonymity will be preserved and buyers cannot spike auctions with internal bids.
It could also look at how retailers assess potential bidders before an auction, following persistent complaints that suppliers taking part are unable to meet the specifications.
Claims from some UK own label suppliers that retailers were beginning to question auctions as a procurement tool were not supported by WWRE’s statistics, said Aguilar.
“We have 35 to 40 active members using auctions for a whole range of goods, and volumes are going up all the time. Tesco, for example, is still ramping up its auction use.”
Auction volumes at the exchange, which has Tesco, Marks and Spencer and Safeway on its books, topped $6.5bn, representing savings of more than $1bn, he said.
Tools for members such as collaborative planning, forecasting and replenishment and item management were also really starting to take off, Aguilar added.
Tesco will start trialling a collaborate planning tool with selected suppliers via WWRE this year, for example.
This would help Tesco manage events such as major promotions more effectively through sharing more data with its supply base, said Aguilar.
Elaine Watson
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