Cataloguing Savings in Freight – Before They’re Needed

Situation

  • Major European retailer wanted to re-negotiate Land freight for 2016-17.
  • Goal was to create a freight catalogue containing prices, lead times and delivery modes for EMEA.
  • The freight catalogue would be used in last minute delivery situations so that client could easily pick the best delivery mode without time-consuming negotiations.
  • Quotes requested for multiple destinations in 9 different countries.
  • 11 Suppliers were invited to participate in the eAuctions.

 


Solution

  • Two CherryLot Auctions created, each with one lot per country and multiple lines in each lot corresponding to the different destinations.
    • 1st CherryLot Auction contained 6 countries, with 1-7 destinations in each lot.
    • 2nd CherryLot Auction contained 4 countries with 5-15 destinations in each lot.
  • Suppliers required to bid for two different delivery modes: Full truckload with boxes and Full truckload with garments on hangers.
  • For the remaining destinations with low volume, an RFQ CherryLot was run after the primary eAuctions. Bidders requested to match savings from primary eAuctions.

Result

  • All suppliers participated actively in both eAuctions
  • 1st eAuction: Average savings of 8,50% relative to current price.
  • 2nd eAuction: Average savings of 5,63% relative to current price.
  • RFQ for low-volume routes: 7,65% savings relative to current price.