eAuction on Cheese - savings of 19,99%

Situation

  • A large retailer wanted to conducted an eAuction on selected cheese products
  • Annual Spend of €5.676.150
  • Business held by a single supplier
  • Incumbent supplier did not qualify for the eAuction as prices were not competitive enough
  • Two new suppliers qualified - but was this enough competition to ensure a dynamic eAuction with just two participants?
  • Scattered price structure on individual products

 


Solution

  • Due to the attractiveness of the order and the supplier's desire to gain the business, a traditional Reverse eAuction was chosen
  • To enhance competition and make the business more attractive, several products were pooled into one lot, so suppliers were competing on total lot sums instead of individual items
  • This resulted in a CherryLot™ eAuction with two lots and a very close price structure per lot

Result

  • 128 bids received in 29 minutes
  • Identified savings: 19,99%
  • €1.134.740 saved