A few suppliers can equal big savings

Situation

  • Our client, a large European retailer needed to select one vendor for brined mangoes
  • Only two potential sources were qualified and the initial bids from suppliers were far apart. With strong quality product and service available from both, key award criteria was price.

Solution

  • Selected a Japanese auction format for event
  • Suppliers started bidding at their own pre-bid levels with no ranking feedback
  • Each minute, bid price stepped down by 1 GBP
  • Bidders must agree to new pricing to remain in the bidding

 


Result

  • >22% savings vs. current pricing
  • 161 total bids placed
  • Bidders were able to start bidding from their own initial bids
  • Event took less than one hour to complete