Situation
The buyer, a large global manufacturer that had never ran an eAuction before needed to purchase flat glass. 5 suppliers were invited, no others were sourced, however only 4 participated. There were 3 different bid packages that the buyer wanted to award to 2 suppliers. One supplier would receive 2 bid packages and one supplier would receive the remaining bid package. 3 of the 4 suppliers were located in China.
Solution
- Selected a CherryLot auction format for the event
- Suppliers had transportation cost parameters added, so apples were compared to apples from the beginning
- There were 20 line items spread across the 3 lots, so we transferred their RFP pricing as individual start prices. This way the suppliers only needed to improve the lines they were not leading on
Result
- >14.73% savings vs. current pricing
- 206 total bids placed
- Bidders were able to start bidding from their own initial bids
- There was over an hour of extensions, which meant increased savings for the buyer
- The auction lasted 1:34
