Situation
Our client, a large European food producer, was looking to purchase Cocoa powder for food manufacturing. The eAuction was conducted as a traditional Reverse auction with just a single line for the total volume. Bidders were very active and significant savings were achieved
Solution
- 4 participating suppliers
- Suppliers were required to bid on one single product line and quote their DDP prices/ton
- Single eAuction winner to be awarded an order with a total volume of 200 MT
- This event was ran as a traditional reverse auction
- All suppliers had individual starting prices
- High level of competition with an average starting price difference of 1.04%
- Messaging was used extensively in order to encourage bidding activity
- Leading Bid was shown during the first 24 minutes of the auction
Result
- Very dynamic bidding activity
- 27 bids received in 29 minutes
- 14 extensions
- Savings relative to Current Price: 50,04%
- Identified Savings: GBP 228.400
