eAuction on Pâté - savings of 33%

Situation

  • Spend €1.310.000 annually
  • Previously only one supplier had been able to meet the specifications and quality requirements for this product
  • Only 2 suppliers qualified to participate in the eAuction, whereof one was a new and unproven supplier
  • New unproven supplier starting eAuction with a 4% lead

Solution

  • 2 suppliers were pre-qualified for the eAuction based on a thorough RFP and product testing
  • Conducted a Cherry Picking eAuction as the buyer wanted to show the incumbent supplier the new competition in the market - and use this new market dynamics to reduce current price

Result

  • 57 bids received in 49 minutes
  • €432000 saved -33%

Our client - a Large Nordic retailer - ran an eAuction on a pâté, a product that historically could only be sourced from one specific supplier, leaving the buyer with limited negotiation options.

However, qualification of a new supplier gave the buyer new improved negotiation options, which resulted in a very successful eAuction.