Labels - savings of 12.4%

Situation

  • The client called Scanmarket on a Monday wanting the eAuction to take place on Friday of the same week. 
  • €1,240,000 a year for a large European Retailer
  • 4 countries - 44 product variants in total
  • 10 suppliers pre-qualified
  • If possible consolidate to fewer suppliers
  • Under time pressure - contract needed to be re-negotiated before a long holiday break

 


Solution

  • Collated and issued relevant documentation and information to selected suppliers
  • CherryLot™ auction - one lot per country each with up to 15 product variants
  • Not all suppliers were qualified for all country lots - blindfolding used
  • Parameter adjustment added to one of the suppliers, as there was a single preferred supplier
  • Scanmarket conducted individual training sessions with suppliers - opportunity to discuss bidding strategy and highlight supplier advantages like market price insight and fair competition
  • Spent time on personal contact with suppliers - they felt they were listened to and the training made them feel more comfortable

Result

  • High bidding activity - more than 400 bids were submitted and all suppliers took part
  • €154,000 savings identified - 12.4%
  • Consolidated to 2 suppliers - the buyer was very satisfied with the results