eAuction on Recruitment - savings of 62%

Situation

  • Our client had used the same agency for recruitment for a long time - the services included recruitment of permanent, temporary and contractor positions within a Head Office, Retail Shops and a Contact Centre
  • Wanted to secure a new 3 year contract agreement
  • Spend £1,200,000 a year
  • Service provided for locations all across the United Kingdom
  • Internal stakeholders were very reluctant to switch agency - so procurement had to prove the potential savings were high and switching would not compromise service
  • The recruitment category is relying on a good relationship with the agency to get the best employees

Solution

  • Scanmarket facilitated a data collection exercise - All requirements captured and included in the Tender documents
  • We split the tender up in sub-parts to enhance competition:
    • Permanent recruitment
    • Temporary staff for Contact Center
    • Recruitment of General and Deputy Manager positions
  • 58 suppliers were contacted
  • 29 suppliers were pre-qualified for the eAuction based on a thorough RFP

Result

  • 1110 bids received in 50 minutes
  • Achieved an average 62% savings on the 3 sub-parts of the eAuction
  • £744,000 saved every year