eAuctions on Air and Sea Freight

Situation

  • The client wanted to conduct their negotiations on Air and Sea Freight in an eAuction
  • Spend: €3.945.439 - annual spend
  • 8 suppliers qualified
  • +1000 lanes - not possible to integrate all lanes into an eAuction

Solution

  • Starting point: +1000 lanes. We arranged the +1000 lanes into 4 Lots based on the to and from destinations
  • Within each Lot, the suppliers should bid on 3 lines, namely the sub-totals for FCL, LCL, Air respectively
  • Conducted 4 List eAuction with one Lot in each, as our client wanted full focus from the suppliers per Lot
  • The suppliers were able to see Leading/Not leading via the green, yellow and red lights. They could see it both on the Lot Total and per sub-total. Lights on the sub-totals were enabled, as the supplier's position on the sub-totals could have an influence on the final order allocation
  • After each auction, the suppliers had to update the individual lane prices in the Excel sheet, so the corresponding sub-totals matched the sub-totals submitted in the eAuction. The Excel sheet should be uploaded to the eAuction latest 24 hours after the eAuction
  • The corresponding Excel sheet gave our client full visibility of all individual lane prices after the eAuction, but allowed the suppliers to fight on a few sub-totals

Result

  • Total saving € 889429
  • Average 22,54% for the 4 auctions
  • Total number of bids: 321 in 2 hours and 24 minutes