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    Imaras example

    To show how Imaras works, a sample auction has been set up with the objective of trying to secure a contract for logistics service, between a milk producer (i.e. buyer) and three transportation service companies (i.e. providers).

    Three Imaras users bid for the invloved companies, while the system control the process on behalf of the milk producer. Like many Imaras users, they have decided to use pseudonyms rather than their real names. "Cres", "Nart" and "Peeka" each represent one of the service companies. After they each request an Imaras account and are matched up by the system, they are ready to begin.
     

    Auction for milk transportation service

    Outline of this example:

    Case information

    Milika is a large milk producer and wants to sign a one-year contract for the transportation of milk to customers in the Barena County. The company requires daily shipments from a single depot to over 500 customers. Milika produces about 60 thousand liters (=60 kl) of milk daily, which need to be delivered on the same day. The average monthly milk production is 1,800 kl.

    As of next year, Milika's current transportation service provider will not transport perishable products, such as milk. Therefore, Milika contacted several other well- established logistics service providers. Each of these providers conforms to the industry's highest standards, including, on-time transport of perishable products. Each has a fleet of small milk tanker trucks, with a 5 kl and 10 kl capacity.

    Milika wants to sign a one-year service contract with one of these providers. A standard one-year contract contains two freight rates and the penalty for delay. In the one-year contract, the terms (or issues) are specified on a monthly basis so that the payments can be made according to the actual deliveries. All three issues must be agreed upon and specified in the contract:

    1. Standard rate: This is the rate at which the provider reserves transportation capacity for the milk producer. Milika requires a reserved capacity of 1,800 kl per month and assures that the service provider receives no less than 1,600 kl multiplied by the standard rate.
      Example: When the agreed rate is $20/kl, then the provider is assured a minimum of $32,000 (1,600 x 20 = 32,000); for additional milk transported, the provider receives $20/kl until the limit of reserved capacity is achieved.
    2. Rush rate: This is the rate for rush orders requested by Milika's customers to transport milk on an ad hoc basis. Milika pays the rush rate but the customers pay a higher price than standard orders.
      Example: If the rush rate is $50/kl and 15 kl were requested, then Milika pays $750 (50 x 15 = 750).
    3. Penalty for delay: This is the amount paid by the service provider when milk is delivered on the same day but later than the scheduled time. The penalty is a percentage of the standard rate.
      Example: If the standard rate is $20/kl, the penalty rate is 50%, and if 15 kl is delivered late, then the service provider pays $150 penalty (20 x 50% x 15 = 150).

    To streamline the contract preparation and avoid misunderstanding, Milika prepared the table below and gave it to each service provider.

    Issue

    Description

    Range

    Standard rate

    Transportation price per one kl of milk up to the reserved quantity.

    $20/kl ~ $40/kl

    Rush rate

    Transportation price per one kl for rush orders.

    $50/kl ~ $70/kl

    Penalty for delay

    Penalty (fraction of the standard rate) for delayed delivery (late delivery but within the same day).

    30% ~ 50%

    Note: Range provides minimum and maximum allowable values, e.g., standard rate cannot be lower than $20 per kl or more than $40 per kl.

    Bids & limits

    This is the page where you can make a bid and check the current limits. Other information may be also available on this page depending on the auction rules and settings, for instance, the bids in previous rounds, the winning bids and/or other's bids. Please see a short note on Imaras bidding process.

    The initial screen of the bids & limits page may look like this:

    MakeBid-none

    After several rounds, the screen may look like this:

    MakeBid-4Rounds

    Auction history

    During the auction, you can always review all the bids that have been submitted by yourself and other information depending on the rules (e.g. the winning bids and/or other's bids). The auction history page illustrates the bids in a table and a graph.

    The screen of auction history with both self-bids and winnning bids may look like this:

    AuctionHistory_winBids

    Winner annoucement

    The auction is closed, when: (1) no more than one bidder bids, or (2) the deadline or closing time is reached. Once the auction is closed, an announcement of the auction result will be announced by the buyer. If there was at least one bid submitted, the buyer chooses the bid yileding the higest value or rating for the milk producer and that bidder will be the winner; otherwise, the auction fails.

    The screen of winner annoucement may look like this:

    WinnerAnnoucement

    The screen of auction history after winner annoucement may look like this:

    WinnerAnnoucement