Situation
Our client, a large European retailer, needed to establish a new 1-year contract on Road salt supply for their shops. Suppliers were requested to bid for larger bags of salt (5, 10 and 25 Kilos). The first step was an eRFx where 9 suppliers were invited to provide company information and initial quotes. Four suppliers qualified via eRFx and were invited to the eAuction.
Solution
- Retailer looking for the best price for the total order so a List Auction was chosen and suppliers were required to compete for the total amount rather than individual line items
- Traffic light system was enabled to indicate their position, both on the total and per line
Result
- Two of the invited bidders were particularly competitive
- eAuction lasted 39 minutes including 12 time extensions
- Total savings achieved in relation to current pricing: 35,15%
