Situation
A large Private hospital group with a baseline spend of £80,000 per year on items such as chairs, meeting tables, shelves, filing cabinets, etc. wanted to renegotiate the current contract.
Solution
- 26 potential suppliers were invited to an eRFP
- 6 suppliers ended being qualified and invited to bid in the eAuction
- A List Auction was chosen as the client did not wanted to split the order between multiple suppliers
- Individual prices equal to the suppliers eRFP bids were set in the eAuction
- A green/yellow/red traffic light system was used to encourage bidding and provide additional feedback to bidders
- The suppliers were trained and and conditioned individually so that they were fully prepared for the eAuction
Result
- Significant bidding activity with 298 bids in total
- 19 time extensions
- Savings of 42.75% or £34,000 per year relative to current costs
