How Forward Auctions Can Help You Create Value From Any Situation!

Situation

  • A European retailer had accumulated a large number of EU pallets in their central warehouse, as most of their products are delivered on EU pallets. 
  • A total of about 400,000 pallets had varying conditions due to wear and tear and were divided into 2 quality groups (B and C pallets)

Solution

  • A Forward Cherry Picking Auction was selected, with one line per pallet quality
  • Five potential buyers were invited to the eAuction
  • During the auction, the participants could see their Rank per line
  • The winner of the auction per quality was the supplier with the highest price

Result

  • The eAuction was very dynamic with the buyers competing heavily on both qualities
  • A total of 275 bids were placed and the eAuction was extended 11 times
  • A spectacular result was achieved with bids increasing between 89.25% and 95.25% from their opening level during the course of the event