What Is a Japanese Forward Auction?
A Japanese Forward auction is a dynamic bidding format where the price increases step-by-step, and you must decide whether to accept each new price step to stay in the competition. Every time the price rises, you will see a countdown and must choose to continue or exit.
If you accept the step, you remain in the auction.
If you decline or miss the step, you automatically exit and cannot rejoin.
Important:
To remain competitive, you should accept as many price steps as possible. The supplier who stays in longest — accepting the highest percentage — has the strongest chance of winning.
💡 From your perspective as a supplier:
You monitor each new, higher price step (expressed as a percentage, e.g. a discount or bonus offered).
You click Accept when you agree to continue at that price.
Your acceptance becomes binding for that step.
Staying active longer increases your competitive position.
Step-by-step guide to participating in a Japanese Forward auction
Respond to bidder agreement
If a bidder agreement is included in your auction, it will be the first screen you encounter upon entering the project. There, you will be prompted to review the terms, requirements, or conditions outlined by the sourcing team.
If you agree, you are legally acknowledging and accepting the terms set forth, thereby gaining access to the complete auction. If you decline, you will no longer be able to participate in the auction.
Chat
If you have any questions on the bidder agreement or later on during the auction, you can use the chat to communicate with the buyer.
Preview auction
After accepting the bidder agreement(s), if one is required for your auction, you will enter the preview stage, where you can view the auction start time and the items that will be auctioned.
On this screen you will also find the key auction parameters:
Starting percentage: The initial price step at which the auction begins (e.g. 5%)
Increment: The percentage increase applied at each new step (e.g. 2%)
Step duration: Time available to accept each step (e.g. 60 seconds)
Steps that can be missed: How many consecutive steps you can skip before being removed (e.g. 2)
Bid in the live auction
When the auction starts, the interface displays:
The current bid (as a percentage — e.g. 5% Total)
A countdown timer showing how long you have to accept the current step
To submit your bid:
Click Accept bid.
A confirmation dialog will appear asking you to confirm your choice.
Once confirmed, your offer becomes binding and cannot be withdrawn.
The status changes to Offer pending until the current time step ends.
At the next step, the price will increase by the defined increment (e.g. from 5% to 7%). You will need to accept again to remain in the auction.
How to Stay Competitive in a Japanese Forward Auction
In a Japanese Forward auction, the price increases step-by-step. To remain in the auction and stay competitive, you must continue accepting each price step as long as possible.
Each time you click Accept, you signal that you are still willing to offer that percentage.
If you stop accepting steps:
You exit the auction
You cannot rejoin
The remaining suppliers continue competing without you
⚠️ Important: Unlike a standard Japanese auction where the lowest price wins, here the highest accepted percentage wins. The supplier who accepts the most steps has the strongest chance of winning.
What happens if you miss a step?
Depending on the buyer's settings:
You may be removed immediately, or
You may be allowed to miss a limited number of consecutive steps (the buyer chooses this rule)
💡 Tip: Always monitor the countdown timer. Each step has a short response time.
Best practices for participating in a Japanese Forward auction
Stay focused and respond quickly at each step
Accept every step you feel commercially comfortable with
Avoid waiting until the last seconds to accept
Keep your internet connection stable
Make sure you have internal approval for your maximum acceptable percentage before the auction starts
Remember: the last percentage you accepted is your binding offer.
Paused auction
The buyer may pause the auction if, for example, some suppliers experience connectivity issues. During this pause, you will be unable to place bids and will see a paused screen until the buyer resumes the auction.
After the auction
Once the auction is over, you will see an Auction ended screen showing your final bid (the last percentage you accepted). The procurement team will contact you regarding next steps.
💡 Note: The system does not notify you at this stage whether you won or lost. The buyer will reach out to you separately with next steps.
Frequently asked questions
How is a Japanese Forward auction different from a regular Japanese auction?
How is a Japanese Forward auction different from a regular Japanese auction?
In a regular Japanese auction, the price decreases and suppliers drop out when the price gets too low. In a Japanese Forward auction, the price increases and suppliers drop out when the percentage gets too high. The winner is the supplier who accepts the highest percentage.
What does the percentage represent?
What does the percentage represent?
The percentage typically represents a discount or bonus offered to the buyer. The higher the percentage you accept, the more competitive your offer is. Your buyer will clarify what the percentage refers to in the context of their specific auction.
What happens if nobody accepts a step?
What happens if nobody accepts a step?
The price continues to increase automatically at each new round. The auction ends automatically after a defined number of consecutive rounds where no new acceptances are received. The winner is determined by the last accepted bid before the auction closed.
Can I re-enter the auction after exiting?
Can I re-enter the auction after exiting?
No. Once you decline or miss the allowed number of consecutive steps, you are permanently removed from that auction and cannot rejoin.
How do I access technical support during the auction?
How do I access technical support during the auction?
Click on the message bubble on the bottom right corner of the screen and select Ask a question.