eAuction on Car Leasing - savings of 10.38%

Situation

  • The client had previously obtained a 11% price decrease with their current supplier for Car Leasing
  • Resultantly, they did not feel they were able to pressure the same supplier sufficiently during a new face-to-face negotiation
  • €4.900.000 - annual spend
  • 3 suppliers invited to the eAuction - but strong preference for current supplier
  • Current supplier had given the best pre-quote
  • 9% difference between the best and second best supplier

 


Solution

  • Not possible to run a traditional Reverse auction, as the competition was not good enough. In addition, our client did not want to end up in a situation, where it was one of the new suppliers, who won the auction
  • A Japanese eAuction was conducted, where each supplier started on their individual start price
  • The two new suppliers did not reach the start price of the best and current supplier during the eAuction
  • The best and current supplier decreased his price with 10.38% - even though he was neither treated before or during the eAuction
  • The main reason for this great result was good supplier conditioning prior to eAuction combined with a solid messaging strategy during the eAuction. The current supplier continuously knew what our client expected from him

Result

  • Total saving € 513.000
  • 10.38% saving (improvement made by current supplier)
  • Total number of bids: 62
  • eAuction duration: 45 minutes