Patent ID: 7756773
Filing Date: 2010-07-13
Classification: G06Q

Abstract:
1. A method of conducting an online auction between a controlling party and at least two competing participants, the method conducted within a computer network comprised of at least one controlling party computer, an administrator computer, and a participant computer associated with each of the at least two competing participants, the method comprising: (a) setting, using an administrator computer, a reserve price for the online auction; (b) conducting, using the administrator computer, the online auction between the at least two competing parties; (c) determining, using the administrator computer, whether a predetermined time trigger has been reached; (d) in response to a determination that the reserve price has not been reached when the predetermined time trigger has been reached, determining, using the administrator computer, whether the controlling party has selected to enter a reserve price negotiation phase, and revising the reserve price for that reserve price negotiation phase; (e) accordingly, extending the online auction, using the administrator computer, into a reserve price negotiation phase based on the revised reserve price, wherein the auction involves the award of a supply contract to a supplier selected from a panel of predetermined suppliers which each have a base supply contract with the buyer, and the computer network over which the online auction is carried out comprises at least one buyer computer, an administrator computer, and at least two supplier computers, the method including the steps of: establishing key parameters for a bill of materials (BOM) to be submitted by the administrator computer to the at least two supplier computers; establishing a rating for each supplier of the panel of predetermined suppliers related to said key parameters; receiving offers during the auction from the supplier computers of suppliers; applying the respective ratings to offers received by the administrator computer from the supplier computers to adjust that offer prior to comparison of that offer with any other offer, wherein each supplier is provided with a current bid to win (CBTW) in respect of the supply contract, the CBTW calculated by said administrator computer to dynamically indicate to a supplier an offer that that particular supplier must submit to remain competitive in the auction, and wherein the CBTW for a supplier is calculated in accordance with the formula: where x indicates a particular supplier X; m indicates that particular supplier's bid number; n indicates the overall bid number (i.e. 1st bid: n=1; 2nd bid: n=2; etc); FB indicates a factored bid for said particular supplier; MD indicates a set minimum bid decrement; and SF is the supplier factor set in accordance with said supplier rating.