SFM has been using the Dutch clock auction since 1989. Adopted from the Dutch tulip auctions, the system ensures product is sold quickly while achieving premium prices.
Held from 5.30am every weekday, the Dutch clock auction is a silent auction which begins at the highest price and drops until a bid is made. The starting price is usually set about $2 above what the product is expected to receive. Two clocks auction seafood simultaneously to ensure product is sold quickly.
Under the Dutch clock auction around 1000 crates are sold every hour. On average each crate weighs 23 kilograms. SFM sells around 2700 crates at every auction, or 65 tonnes of fresh seafood every day.
While the majority of produce is sold through the Dutch clock auction a traditional voice auction is used for live crustaceans and sashimi tuna.
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SFM AUCTION CLOCK
The clock contains all the information about the auction in progress, detailed below:
REM
Number of crates left to sell in the current lot.
MAX
Maximum number of crates a buyer may purchase in the current sale. When there are no limits for the current sale, this field will be blank. Normally, the maximum is 15 crates.
POS
The position of the first crate in the lot on the floor.
QTY
The total number of crates offered for the lot will be displayed.
KGS
The weight of the crates in the current lot for auction, in kilograms.
SUPPLIER
The name of the supplier who provided the lot.
BIDS ENABLED
When the auction clock system accepts bids this single character field will be lit.
PRICE
Price displays the current offered price per kilo for the lot being auctioned.
UNITS
This shows by how much the price falls for each tick of the clock.
BUYER
Short name of the buyer who purchased the last sale.
SPECIES DESCRIPTION
The species name for a lot (14 display characters). If the hash '#'symbol appears here, it signifies this is a grouped lot. Crate weights may vary by seven kilos for the displayed weight. The weight shown in a grouped lot is the minimum weight.
LOT DESCRIPTION
The description of a mixed lot (using up to 49 display characters) will appear in the line below its appropriate mixed lot. Descriptions include whether product is headed, headed and gutted etc.
BUYERS
600 buyers are registered to purchase from the auction. Every morning about 170 attend the auction. Buyers begin viewing the produce from 4.30am. Before being eligible to bid at SFM each buyer must register. When they register they are given a credit check and a weekly credit limit as well as a PIN number. Buyers can only spend up to their credit limit and this account must be paid weekly.
PURCHASE
To make a bid, buyers enter their six digit log on number into one of the 260 key pads in the buyer's grandstand. Each buyer's terminal has two bid buttons allowing them to participate in both auctions.
INVOICING STATIONS
Similar to ATMs these machines are operated by the buyer's log on number. By keying in their number, buyers can print out their invoices and removal dockets and check the balance of their account.
COLLECTING THE SEAFOOD
Once buyers have purchased the seafood and printed out the removal dockets, the seafood is collected from the auction floor. Wheelers pick up the product and take it to be scanned at the removal gate before it is whisked away to retail outlets and restaurants.