eAuction on Laptop Computers - Realized Savings of 22.85 %

Situation

  • Our client, a large global company, was looking to purchase two different models of laptops for their Fiscal year; a High End and a Standard laptop
  • These computers would be purchased in the US, however they would also be distributed to Europe, India, Pac Rim, and Japan
  • This client had never run an eAuction prior to this, and was unsure about the results being better than how they've done negotiations before
  • The suppliers needed to provide laptops for various locations around the world, and all specifications listed needed to match with the device they were bidding with
  • The buyer was looking for the absolute best price
  • The suppliers wanted resellers to participate on their behalf, however the resellers knew the pricing of the competitors

 


Solution

  • Suppliers were requested to pre-quote prior to the eAuctions
  • There were only 2 line items to bid for, High End laptops and Standard laptops
  • A Cherry Picking auction was used
  • 5 suppliers were invited, 3 were shortlisted to participate in the auction
  • The suppliers were unable to see the leading bid, but were able to see if they were leading/not leading via "traffic lights" (green/yellow/red lights)

Result

  • The eAuction ran for an additional 28 minutes
  • The incumbent supplier was beat in price by their biggest competitor by 7.6 %
  • Time savings were reduced drastically
  • Our client reduced their corporate pricing globally, based on the results of this auction
  • Identified realized savings USD 540,685 - 22.85 %