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planning/location_manager/broadcast_tender.htm

Open Tender

Broadcast Tender Process | Spot Bid Tender Process

Open Tender allows planners to spot bid or broadcast a tender.

An open tender differs from an ordinary tender in the following ways:

An open tender is any tender that goes to a group of service providers inviting them to bid on the shipping cost of the shipment. The lowest bidder is usually awarded the business.

The following criteria must exist for an open tender:

Open Tender Business Logic

Comparison of Spot Bid Tender and Broadcast Tender

The following table summarizes the two kinds of open tender processes.

Action

Spot Bid Tender

Broadcast Tender

Tender to service providers

Mode match with shipment
Allow Tender = Y
Accept Spot Bid = Y  
Tender sent to all qualified service providers.

Mode match with shipment
Allow Tender = Y
Accept Broadcast Tender = Y
Tender sent to All qualified service providers.

Change shipment status

SECURE RESOURCES_TENDER RESPONSE OPEN

SECURE RESOURCES_TENDER RESPONSE OPEN

When is bid evaluated?

At the spot bid tender timeout.

Immediately after bid is received.

If bid is acceptable

Send Ordinary Tender to  the winner.
Shipment Status = SECURE RESOURCES_TENDERED
Send withdraw to all other service providers.

Send tender accepted notify to the winner.
Shipment Status = SECURE RESOURCES_ ACCEPTED
Send withdraw to all other service providers

If bid is not acceptable

Send Spot bid tender timeout to all service providers.

Send broadcast bid rejection to the bidder

If open tender is withdrawn

Allowed.
Send notification to all service providers. (Before spot bid timeout, or manual selecting winner)
Shipment Status = SECURE RESOURCES_WITHDRAWN

Allowed.
Send notification to all service providers. (Before a winner is selected.)
Shipment Status = SECURE RESOURCES_WITHDRAWN

Manually award bid

Allowed by planner from Online Booking/Tendering page.

Allowed by planner from Online Booking/Tendering page.

At time out

Evaluate all bids and select a winner or reject all.
If there is a winner, set Shipment Status = SECURE RESOURCES_TENDERED
If no winner set Shipment Status = SECURE RESOURCES_NO RESPONSE

Since all bids have been evaluated when they were received, send timeout to all service providers.
Shipment Status = SECURE RESOURCES_NO RESPONSE

After a successful open tender bid

Shipment.Service Provider ID is set to the winning service provider.
On the Shipment Financials tab, the Spot Costed check box is marked and a new shipment cost record is created with Cost Type of Base and the value is equal to the bid amount. The Cost Fixed check box is  also marked.

Shipment.Service Provider ID is set to the winning service provider.
On the Shipment Financials tab, the Spot Costed check box is marked and a new shipment cost record is created with Cost Type of Base and the value is equal to the bid amount. The Cost Fixed check box is also marked.

If tender is withdrawn

All records created and/or updated by open tender process are removed.

All records created and/or updated by open tender process are removed.

 

Events Associated with Open Tender

You can configure the following events for notification in the Communication Manager.

Event

Raised Condition

TENDER SPOT BID

Spot Bid Tender is successfully processed.

TENDER SPOT BID  WITHDRAWN

Spot Bid Tender has been withdrawn.

SPOT BID TENDER TIMEOUT

Spot Bid Tender timed out.

TENDER BROADCAST

Broadcast Tender is successfully processed.

TENDER BROADCAST WITHDRAWN

Broadcast Tender has been withdrawn.

BROADCAST TENDER TIMEOUT

Broadcast Tender timed out.

BROADCAST TENDER RESPONSE

Response to Broadcast Tender is received.

Broadcast Tender Process

Shotgun or broadcast tendering is the process of finding a service provider to cover a "hot" load. The planner does not have the time to go through the normal tender process for such a load. This load would be broadcast tendered to all service providers that accept broadcast tenders. The first service provider to accept the tender at a cost that is within a certain tolerance is awarded the shipment.

The shipment is then auto-assigned to this service provider and its cost changed to the cost specified by the service provider. A tender withdrawal is sent to all other service providers participating in the broadcast tender.

The following figure describes this process:

 

Spot Bid Tender Process

Tender spot bidding is built around an auction or exchange model. The goal is to find the cheapest cost service provider to cover the shipments. The shipments are auctioned to all service providers that participate in spot bidding. There is a time limit for the various service providers to respond as defined by the SPOT BID RESPONSE TIME BEFORE SHIPMENT START parameter.

The tender process is closed after the time limit expires and the service provider with the lowest bid price is selected.

A tender withdraw is sent to all the service providers that did not respond to the tender. The actual tender offer is then sent to the selected service provider. If the selected service provider accepts the tender, then a reject is sent to all the other service providers that bid on the tender. If the selected service provider declines the tender then the tender offer is sent to the next cheapest bidder. This process continues until a service provider accepts the tender. If no service provider that bid actually accepts the tender or no service provider actually bids on the tender, the shipment is changed back to the "Secured Resources Not Secured" state.

The following figure describes the spot bidding process: