Why a clear Scope of Work is the Key to eAuction Success in Procurement

Introduction

When people talk about eAuctions and digital procurement, the focus is usually on formats, platforms, and negotiation tactics. But ask any seasoned buyer, and they’ll tell you the real challenge isn’t in the bidding process – it’s in the Scope of Work (SoW).

A poorly defined scope can sabotage even the most sophisticated eAuction. And according to Jacob Gorm Larsen, author of A Practical Guide to e-Auctions for Procurement, if the scope is vague, biased, or reused from past tenders, you're not running a fair negotiation – you're just spinning a roulette wheel.

What Is the Scope of Work in Procurement?

A Scope of Work (SoW) is the document or section that outlines:

• What is being procured
• Key specifications or deliverables
• Terms and conditions
• Evaluation criteria (price, quality, service, etc.)
• Expected outcomes or performance measures

It’s the foundation that allows suppliers to submit competitive and comparable bids - or not.

Why the Scope of Work Makes or Breaks an eAuction

Let’s be clear: no amount of auction strategy can fix a broken scope.

If you don’t define your needs clearly, suppliers are left to guess. And when they guess:

• Some bids come in 50% too low (or too high)
• New vendors get lost in translation
• Incumbents win by default because they "know how it works"

This isn’t a competitive process – it’s a lottery.

Common Problems Caused by Vague Scopes

• Incomparable offers due to different interpretations
• Disengaged suppliers who don’t trust the process
• Wasted time answering clarifications and fixing errors
• Over-reliance on incumbents
• Undermined negotiation leverage

A weak scope compromises the very market-driven nature of eAuctions – turning potential savings into risk premiums.

How a Clear Scope of Work Drives Value in eAuctions

A precise, fair, and standardized SoW:

• Aligns suppliers on expectations
• Enables like-for-like comparisons
• Allows procurement to focus on value, not damage control
• Builds long-term trust with suppliers
• Results in smoother contract execution

At CROWN Procurement, we tend to say that:
“Savings don’t start when the clock of our eAuction ticks. It starts when the scope is done right.”

Scope of Work and the CROWN Framework

No matter if it's in the context of a Source-to-Contract (S2C) or Procure-to-Pay (P2P) project, strategic preparation is key. What we advise for buyers to run the smoothest negotiations requires:

• A total-value approach (not just price)
• Real market-driven competition
• Clear commitment to outcomes
• Supplier pre-qualification based on transparent criteria

The scope is what transforms an eAuction from a tech tool into a value-generation process.

Remember: Get the Scope Right First

When streamlining your negotiations through any digital or traditional process, start at the beginning – not the bidding.

Before selecting a format or platform, ask:

• Is our scope detailed enough?
• Will all suppliers interpret it the same way?
• Are we comparing apples to apples?

Because in eAuctions, the real clock starts with the scope – not when the auction goes live.

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