Big Savings across the pond!

Situation

  • Large Global manufacturer that has never ran an eAuction before needed to purchase flat glass
  • 5 suppliers were invited, no others were sourced, however only 4 participated
  • There were 3 different bid packages that the client wanted to award to 2 suppliers. One supplier would receive 2 bid packages and one supplier would receive the remaining bid package
  • 3 out of the 4 suppliers were located in China

Solution

  • Selected a CherryLot auction format for the event
  • Suppliers had transportation cost parameters added, so apples were compared to apples from the beginning
  • There were 20 line items spread across the 3 lots, so we transferred their RFP pricing as individual start prices. This way the suppliers only needed to improve the lines they were not leading on

Result

  • >14.73% savings vs. current pricing
  • 206 total bids placed
  • Bidders were able to start bidding from their own initial bids
  • There was over an hour of extensions, which meant increased savings for the buyer
  • The auction lasted 1:34