eAuction on Stretch Film - savings of 22.42%

Situation

  • A large Nordic retailer wanted to conduct an eAuction on Stretch film
  • The buyer wanted to have 1 supplier per country, so a CherryLot™ Auction was chosen, to allow grouping the products in lots per country and have suppliers compete per country
  • Spend 2 year contract of €782.361
  • Wanted one supplier per country for all products. Total competition per country was not robust, especially at the line-item level

Solution

  • 5 suppliers were pre-qualified for the eAuction based on a thorough RFP
  • The RFP revealed that for one country there was no competition between the suppliers, and for the second country there was only competition between nr. 1 and 2
  • The buyer was certain that suppliers would be willing to fight for the order based on market intelligence, so a CherryLot™ reverse Auction was chosen
  • The products were divided into two lots - one per country

Result

  • Very high bidding activity - 385 bids submitted
  • The eAuction lasted 44 minutes including 8 extensions of 3 minutes
  • Messaging was used to drive competition and increase bidding activity
  • 8,25 % saved on Lot 1 with low competition - 24,73 % saved on Lot 2, only having competition between 1 and 2
  • Lot 1: Buyer managed to pressure the cheapest supplier to lower his total price even further
  • Lot 2: Supplier ranked nr. 2 in the RFP ended up winning, offering the lowest total price