Snapshot - eAuction on Security Guards - savings of 28%

Situation

  • The buyer wanted to go out to the market to consider a new Security Guard Company for guarding and security of their Head Office and retail estate. A preceding RFP showed a very tight competition and it was decided to proceed to an eAuction to achieve even larger savings

 

Spend Background

  • £700,000 a year for nearly 700 stores across the United Kingdom and Head Office Security
  • Contract was close to expiry and up for renegotiation

 

Client Challenges

  • Several suppliers had never participated in an eAuction
  • Incumbent supplier was not as competitive in the pre-quote as new suppliers

Solution

  • 11 suppliers qualified after RFP round - invited to bid in the eAuction
  • Bidding structured in 3 lots:
    • Head Office
    • Retail
    • Key Holding
  • Spent time on individual training for each suppliers - made them feel more comfortable with the process and submitting bids
  • During the eAuction Messaging was used to encourage suppliers to bid

Result

  • High bidding activity - over 700 bids submitted and all suppliers took part
  • eAuction took 66 minutes including 18 time extensions
  • £188000 savings identified - 28% (11,7% compared to best prices in the preceding RFP)