Berries, Less Risk & More Savings

Situation

  • Global Food producing company was in need of a supplier for frozen blueberries
  • Only three potential sources were qualified with strong ability to provide the product and service requested
  • Key award is based on mitigating risk as well as decreasing price associated with the procurement of said blueberries

Solution

  • Selected a list auction in order to maximize award options
  • Split the auction into two lines, one for 100% and one for 50% of the volume to spread the risk and give time to approve new sources
  • Increased transparency by utilizing the traffic light system for the auction as well as turning on the ability to see line by line competition

Result

  • Over 20% savings versus current price
  • Lasted under 30 minutes
  • One winner for both volume splits