eAuction on Car Leasing & Fleet Management - savings of 10.2%

Situation

  • Spend € 6,228,000 over a 3 year period for a Retailer
  • About 400 cars of different make and model specifications
  • All cars leased for 40 Months & 65,000 miles
  • Client was reluctant to switch supplier as the existing relationship had been working fine for many years
  • Found it difficult to convince potential suppliers to take over management of existing fleet if they were awarded the contract

Solution

  • Identified 28 potential suppliers
  • Collated and issued relevant documentation and information to suppliers
  • 15 suppliers qualified after RFP round - invited to bid in the eAuction
  • Bidding structured in 3 lots:
  • Management/take over of existing fleet
  • New Cars Lease Cost
  • Alternative Low Emission Cars
  • Spent time on personal contact with suppliers - made them feel more comfortable with the process

Result

  • High bidding activity - nearly 200 bids submitted and all suppliers took part
  • eAuction took 48 minutes including 9 time extensions
  • € 635,000 savings identified - 10.2%

Car Leasing is often a high spend category for many organisations; this client has 100's of company cars.

This eAuction included not only leasing of the cars, but also full service & Car Leasing maintenance as well as management & reporting.