eAuction on Electrical Products - identified savings of 14%

Situation

  • Our client was interested in consolidating the range that they held for their customers and taking the business out to a competitive tender to get a clear understanding of current market prices
  • The process also enabled our client to get a clearer understanding of suppliers' capabilities through the use of a detailed RFI prior to the eAuction
  • Spend Approximately £1.4m per annum
  • Diverse range of products
  • Same incumbent supplier for many years
  • Rationalizing a range of over 2000 products
  • Identifying suitable suppliers

Solution

  • A supplier search was conducted covering wholesalers and manufacturers
  • 16 suppliers were identified and invited to complete an RFI to understand their capabilities in more detail
  • 10 suppliers completed the RFI and were invited to proceed to the eAuction stage of the project
  • 5 suppliers were able to meet all qualifying criteria to participate in the eAuction
  • The eAuction was structured into 3 lots:
    • Electrical Products
    • Lighting
    • Cabling

 


Result

  • In excess of 100 bids submitted by participating suppliers
  • eAuction took approximately 90 minutes
  • £207,000 savings identified - 14.2%