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Case Study – Rocky’s Tender Centre
The business
Rocky Sylvester has owned and managed his business, Rocky’s Tender Centre, for the past two years. The business is situated in a large warehouse with adequate parking. Tendering is a way for members of the public to sell their unwanted second-hand goods in a central location without having to advertise and have prospective purchasers come to their home. On certain days each fortnight the centre is open to receive goods and on other days the centre is open for the public to view and tender for items.
Receiving
On six days each fortnight, people call into Rocky’s Tender Centre with the items they wish to sell. Rocky calls these ‘receiving’ days as the Centre is receiving goods to sell from the public. One of the staff members completes an Agreement to Sell form with details of the item(s) and the person selling (see example completed form below). The seller can nominate a reserve price if they wish – if no tenders reach this price the item will not be sold and the seller will be required to take it back. Items for sale are called lots. A sticker containing a unique number (lot number) is placed on each item and the number is recorded in the Agreement form.
Viewing and Tendering
On three days each fortnight , the centre is open to all members of the public to view all lots. Rocky calls these ‘viewing and tendering’days Any person who is interested in an item (including those who have items in the sale) can make an offer (tender) to purchase the item for whatever amount they wish. The person completes a Tender Form with the lot numbers and amounts they wish to tender (see example completed form below).
How a sale is completed
At the close of the tendering period, Rocky and his staff look through all the tenders and decide which are successful. These will be the highest tenders (provided they meet or exceed the reserve price if one is given). If there is more than one highest tender for an item, the tender received first is accepted. Successful tenderers call in to the centre to pay for and collect the lot(s). Payment may be by cash, eftpos or credit card and purchasers are given a receipt. Successful vendors are also expected to call in to the centre to receive a cheque for the sale price less the centre’s commission.
Information System
Currently, Rocky uses spreadsheets on a single office computer to record information about lots, tenders and sales. However, due to the increasing popularity of the centre, Rocky is now at the stage where the workload associated with maintaining these records is consuming an inordinate amount of time. Only one staff member can access the records at a time which causes bottlenecks and possible loss of revenue. It is also becoming very difficult to access some records quickly if there is a customer enquiry about tenders or sales.
Rocky is now planning on implementing a computerised system to maintain the business records and has hired your company as consultants to carry out analysis and develop the specifications for a new automated information system.

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