Auction Clock Systems
The Auction System is one area that reflects the character and nature of OES. Each system we install is unique, geared towards the need of the particular auction. The following are a few examples of the Auction systems that OES has done.
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United Flower Growers (UFG)
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Co-operative Auctions in Canada have their origins in Europe, dating back to the turn of the century. They continue to have an influence today.
United
Flower Growers Co-op. (UFG)
United
Flower Growers Co-op.
Burnaby (near Vancouver), B.C., CANADA
Phone: (604) 430-2211
The auction at
"UFG" is the largest and oldest flower auction
operating in North America. From its inception to the present, UFG
has benefited from the progressive and cooperative thinking of its members.
The result is the steady growth they have enjoyed throughout their history.
The current auction system at UFG has four electronic OES auction clocks, four OES "reader boards", and 550 bidding stations (keypads). The auctions are held four mornings per week, with additional auctions during busy seasons. In a typical auction, three different auctions are running at the same time, with each auction using an independently controlled Auction Clock.
The first two OES Clocks were installed in 1985. A third was added in 1991. In 1999, UFG expanded their facilities and built an entirely new auction gallery. A fourth OES Clock was added at this time, as were 550 new OES keypads. Each of the four clocks were upgraded to allow up to four purchasers to be accepted with each clock swing if all were stopped at the same time and the supply allowed. The additional clock and 'multiple transaction purchase' function has greatly sped up the auction and shortened the auctioning time.
Depending on how many clocks are running, and how many purchases are enabled per clock swing, the transaction speed of this auction can range from one transaction every two seconds to more than one transaction per second.
In a typical auction morning, up to 100 different growers may have sold product to up to 550 different buyers during a three hour auction. Within minutes of the auction's completion, all of the product will have been properly dispersed, the buyers will have received and paid their invoices, and the growers will know their morning sale total. A small percentage commission is typically charged on each sale.
Ontario Flue-Cured Tobacco Grower's Marketing Board (OFCTGMB)
Ontario
Flue-Cured Tobacco Grower's Marketing Board
Tillsonburg , Ontario, CANADA
and Delhi, Ontario
Phone: (519) 842-3661
The "OFCTGMB" uses two independent OES Dutch style auction systems. One is located in their Tillsonburg facility and the other is 20 minutes away in their Delhi facility.
Each system consists of an electronic clock uniquely configured for 10 cents per revolution in 1/4 cent increments. This is the traditional bidding increment (decrement) for the sale of a pound of tobacco.
In
this application, the product being sold never enters the auction room. A
"catalogue" is prepared immediately prior to an auction which
represents the product's location in the warehouse. The buyer can follow a
"Row " and "Position" number displayed on the clock face
and printed in the catalogue. All buyers are able to view the product in the
warehouse for a period prior to, and immediately following, each auction.
In the auction room, each buyer has only a single button to stop the clock and each valid clock stop represents the purchase of the entire lot in the catalogue. Typically, one lot is sold every 4 seconds. (Again, please remember that there are many variations possible to this strategy).
The auction clock software was written by OES and operates on a Personal Computer.
Interprovincial Flower Market (IPFM)
Interprovincial
Flower Market
Pierrefonds (near Montreal), Quebec, CANADA
Phone: (514) 334-7733
The auction system at "IPFM" was recently upgraded and currently incorporates OES's most advanced equipment. The original electronic clock installed in 1983 is still in use. To our knowledge, it was the first fully electronic Dutch style auction clock operating in the world.
The
current system includes a second OES electronic clock and
250 user-friendly OES bidding stations. Each bidding station
has an LCD display that can inform the buyer of the upcoming lots, the lots
previously purchased, and other information considered relevant to the individual
buyer. An option on this bidding station is the ability to be connected to
a laptop computer so that the buyer's daily activity can be downloaded for
future uses.
The
auction at IPFM operates year-round with auctions every Tuesday
and Thursday morning starting at 6:30. (Extra auctions may be added at busier
times of the year). This is believed to be the fastest operating Dutch
style auction clock operating in North America, with a typical transaction
rate of one sale every second.
The buyer keypads and the auction control system interface have many other features and future options, including the ability to support remotely located (off premises) buyers.
Ontario
Flower Growers Co-op. (OFG)
Ontario
Flower Growers Co-op.
Mississauga (near Toronto), Ontario, CANADA
PHONE: (905) 670-9556
The auction at OFG has been operating since 1972. Their first OES clock was installed in 1983. In 1985, a second OES clock, two OES "reader boards" and 250 OES keypads were installed. OFG then conducted the first "silent" clock flower auctions in the world.
This application is very similar to the "UFG" operation described later, though a bit smaller in size. All of the product is subject to grading and passes through the auction room to be sold. The auction system includes 2 OES clocks, 2 OES reader boards and 263 OES keypads. Both clocks operate independently within a single auction gallery. Typically, "cut plants" are sold on one clock while "potted plants" are sold on the other.
OFG uses OES keypads which have the ability to purchase from both clocks at virtually the same time. They also include special "hot keys" to allow the buyer to stop the clock and select the desired quantities with a single keystroke. OFG operates their auction at a pace of approximately one sale every two seconds on each clock. (It is important to remember that each auction application described has set an auction pace that was determined to be most comfortable to their auction's buyers).
Regular OFG buyers enjoy the convenience of automatically signing on to the auction system by entering their personal "Log On Number" through the keypad. OFG retains the ability to control this privilege for each "reserved seat" buyer. Occasional buyers must register at the office and select from the seats still available.
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Vineland
Produce Auction Association, Inc.
Vineland,
New Jersey
The Vineland Produce Auction is the premier produce auction
in the Eastern United States. Its success is paramount to New Jersey's and
the Northeast region's agricultural industry. The Vineland cooperative consists
of hundreds of member farmers and an elected board of directors. From bell
peppers and yellow squash to staked tomatoes and Jersey eggplant, numerous
commodities are bought and sold throughout the season. The auction handles
thousands of individual transactions during the average growing season,
from early April to late November/early December year after year, which
amounts to millions of packages being sold over the course of the growing
season!
In May of 2002, OES supplied and installed an ascending bid auction
system designed to suit the Vineland Coop's specific requirements. While
most of OES's other systems are 'descending bid' or 'Dutch auction' style,
this system was developed to deliver the many benefits of an automatic auction
without drastically changing the unique culture or other time proven beneficial
aspects of this very successful produce auction. The two most significant
benefits are more efficient auctions (reducing the time that buyers and
sellers have to be present and also lowering costs), and simplification
of the auction rules. The auction interface also acts as an electronic bid
arbitrator, eliminating any dispute over missed or erroneous bids.
Flue-Cured Tobacco Cooperative Stabilization Corporation.
North Carolina, August 2003
- Declining bid, wireless handheld bidding units.
About the Flue-Cured Tobacco Cooperative Stabilization Corporation:
It is often commonly referred to simply as “Stabilization”, representing farmers on the world market with supplies of superior quality, aged flue-cured (Virginia) leaf which is processed and ready for manufacturing. Their tradition of quality and commitment to excellence is earned by the careful way they process, store, protect and sell leaf. Their reputation of being a supplier of flue-cured tobacco, grown with pride in the USA, is established by over 50 years of buyer satisfaction.
Tobacco has contributed to the growth and development of the United States for over 375 years. From the colonial era to the present, tobacco has been a driving force in the national economy. The same enterprising spirit that guided the first commercial tobacco growers in Jamestown, Virginia in 1612, continues their “Tradition of Quality”.
About the OES auction system:
OES designed and supplied a completely mobile auction solution for use in up to 43 warehouses by up to 9 groups of buyers and auctioning staff. Each buyer is equipped with a wireless handheld bidding terminal that allows him/her to compete fairly on the lots being offered. Much of the auction process itself still closely follows their traditional time honored practice of walking through the warehouses examining the product while it is being sold. The deployment of the OES system has successfully brought in the advantages of new technologies while maintaining the tradition and culture of their rich history.