Great Results in a Niche Market - Even For a First eAuction

Situation

  • A leading environmental technology company was in the market for paint and coating chemicals
  • As this was the company’s first eAuction, they hired Scanmarket to manage the entire process, including eAuction strategy & set-up, supplier training and event monitoring
  • Four suppliers were pre-approved, all premiers providers in this product area and supply chain partners of the client
  • As a major player in this supply market, the client was confident in its ability to generate bidder participation

 


Solution

  • To enhance regional competition, the market was split in three lots, corresponding to three different regions globally
  • Suppliers had to bid on all regions to be considered for award
  • One region was particularly attractive to bidders as it was a new market and also home to several of the suppliers
  • Awards made regionally with guarantied part of the volume going to the top bidder
  • Necessary for bidders to be competitive in order to participate in volume

Result

  • Entire eAuction process was completed in two weeks
  • All suppliers took part and bid aggressively
  • eAuction lasted more than an hour with 28 time extensions
  • 18,94% savings achieved in relation to current price
  • Client feedback:
    • According to our client, the process would have taken significantly longer and the result would have been less successful, if a traditional face to face negotiation had been carried out