Limited competition for your eAuction? No problem!

Situation

  • International shipping company required new radio communication systems for multiple vessels
  • Radios had been sourced from same supplier for years
  • The buyer responsible for the category wanted to challenge the existing supplier relationship by auctioning the volume
  • Buyer was concerned there would be limited competition due to relatively low value of the order

Solution

  • Initial conversations with suppliers revealed considerable differences in prices
  • A Dutch Auction was set-up to accommodate the potential limited competition
  • Suppliers asked to accept Terms & Conditions etc. upfront so price was only negotiation point

Result

  • All potential suppliers logged in indicating that they were interested in the sale and that they accepted the Dutch Auction format
  • A Dutch Auction closes as soon as supplier chooses to accept the price suggested by the buyer
  • The Auction was closed 52% lower than the current cost
  • A 15 minute eAuction saved the buyer 52% compared to current cost!