eAuction on Cocoa Powder - average savings of 50.04 %

Situation

  • Our client, a large European food producer, was looking to purchase Cocoa powder for food manufacturing
  • The eAuction was conducted as a traditional Reverse auction with just a single line for the total volume. Bidders were very active and significant savings were achieved

Solution

  • 4 participating suppliers
  • Suppliers were required to bid on one single product line and quote their DDP prices/ton
  • Single eAuction winner to be awarded an order with a total volume of 200 MT
  • This event was ran as a traditional reverse auction
  • All suppliers had individual starting prices
  • High level of competition with an average starting price difference of 1.04%
  • Messaging was used extensively in order to encourage bidding activity
  • Leading Bid was shown during the first 24 minutes of the auction

Result

  • Very dynamic bidding activity
  • 27 bids received in 29 minutes
  • 14 extensions
  • Savings relative to Current Price: 50,04%
  • Identified Savings: GBP 228.400