eAuction on Corrugated boxes - savings of 13.11%

Situation

  • This was the clients first eAuctions ever, and they were nervous with how the results would end. Their suppliers had never participated in an eAuction and so our client was unsure of the buy-in from them
  • The Client had 3 incumbent suppliers. They did not aim in consolidating to one supplier, as this is difficult for their order of boxes
  • All suppliers had never participated in an eAuction

Solution

  • Scanmarket conducted a prequalification round with the suppliers
  • All suppliers had great competition and qualified for the eAuction
  • Cherry Picking Auction was selected, due to the suppliers only able to provide prices for select size boxes
  • Leading/Not Leading event settings were used
  • Spent time sending messages to the suppliers indicating that they were close to leading, to increase bidding activity

Result

  • The bidding activity was steady, the encouragement via the Messaging tool was helpful
  • The lower volume eAuction ran an additional 76 minutes from 38 extensions, the higher volume eAuction ran an additional 14 minutes from 7 extensions
  • $135,316,77 savings identified - 13.11%