Large Savings on Hospital Furniture

Situation

A large Private hospital group with a baseline spend of £80,000 per year on items such as chairs, meeting tables, shelves, filing cabinets, etc. wanted to renegotiate the current contract.


Solution

  • 26 potential suppliers were invited to an eRFP
  • 6 suppliers ended being qualified and invited to bid in the eAuction
  • A List Auction was chosen as the client did not wanted to split the order between multiple suppliers
  • Individual prices equal to the suppliers eRFP bids were set in the eAuction
  • A green/yellow/red traffic light system was used to encourage bidding and provide additional feedback to bidders
  • The suppliers were trained and and conditioned individually so that they were fully prepared for the eAuction

Result

  • Significant bidding activity with 298 bids in total
  • 19 time extensions
  • Savings of 42.75% or £34,000 per year relative to current costs