HMX Online Auctions

The preferred way to negotiate more complex transactions

Unlike the Commodity Exchange, private, online auctions allow you to conduct negotiations on an invitation-only basis. Whether you need to sell a limited supply of overproduction of a single product, or negotiate a multi-year contract for raw materials, transportation and services, we can structure an event to maximize your negotiating advantage. Only the bidders you designate are invited to the event and HMX can handle all of the communication, training and coordination on your behalf.

How it works

In support of our electronic auctions, we employ a proprietary application that has the complexity and flexibility to structure a private, online bidding event designed specifically for your needs. Invited participants will see a simple user-interface allowing them to easily bid on your requirement, and immediately receive feedback on their competitiveness of their bid. You will have a variety of screens and reports to monitor the event in real-time. Behind the scenes, HMX uses the application to configure each event, communicate with the bidders, optimize award scenarios, and ultimately communicate your award decisions. The typical process works like this:

You provide the commercial terms of the event, a list of participants, and the product/delivery details
We configure the platform to support your event, and send an invitation to all participants
We train the bidders, so that they know how to bid in the event
The live bidding will typically last less than an hour.
Participants are able to improve their bids as many times as they like, and receive real-time feedback as to the competitiveness of their bid
When no one will improve their bid any more, the event is over, and you award the business to the most competitive bid

Selling Smarter

An online auction allows you to quickly see the highest price available in the market, at a specific point in time. When you have a limited volume to sell, an auction can determine the optimal way to allocate the volume. We have some proprietary auction formats that let you see the demand curve as a function of price, or optimize the ideal volume/price parcels when you have multiple buyers.

Let Competition Work for You

In a buying situation, if you have multiple sources of supply, an auction allows you to focus the competition for your advantage. Online reverse auctions have become a “best-practice” for buying organizations on all types of items, such as raw materials, feedstocks, energy, packaging, freight, and even professional services. Why do online auctions work?

Compressed time frame encourages “win at all costs” attitude
Suppliers see exactly what they have to do to win the business
Modifying suppliers bids to account for switching costs, transportation, quality differences are easily modeled and let you compare apples to apples
Suppliers cannot leverage inside relationships