Situation
A large retailer wanted to conduct an eAuction on selected cheese products. The annual Spend was €5.676.150 and previously business had been held by a single supplier. However, after conducting a thorough RFI it turned out that the incumbent supplier did not qualify for an eAuction as prices were not competitive enough. Two new suppliers qualified - but was this enough competition to ensure a dynamic eAuction with just two participants?
Solution
- Due to the attractiveness of the order and the supplier's desire to gain the business, a traditional Reverse eAuction was chosen
- To enhance competition and make the business more attractive, several products were pooled into one lot, so suppliers were competing on total lot sums instead of individual items
- This resulted in a CherryLot™ eAuction with two lots and a very close price structure per lot
Result
- 128 bids received in 29 minutes
- Identified savings: 19,99%
- €1.134.740 saved
