Big Savings on a Danish Christmas Tradition – Herring!

Situation

  • Due to limited supply and fishing quotas our client, a large European retailer, needed to lock in supplies of more than 3MM Euro in herring to prepare for the busy Christmas season
  • While there were only two truly qualified suppliers, the information received from the RFx process pointed to a highly competitive market

Solution

  • Given competitive bidding profile, qualified suppliers, and high volumes, buyer chose a traditional list eAuction format
  • Client utilized green/yellow/red traffic light system to encourage bidding
  • Format allowed for multiple line items (11) and ability to make a single award

Result

  • High bidding activity – 390 bids submitted
  • 60% of bids came from non-incumbent supplier
  • The event lasted nearly three hours including 76 extensions
  • Significant savings - €362.000 (11,7%) compared to current price