Successful eSourcing process on Paint

Situation

  • Our client, a global shipping company, wanted to source the market for new potential suppliers of paint for their fleet of ships
  • The current frame agreement was close to expiring and the client wanted to include several other types of paint in the tender, which historically were purchased on the spot market in order to secure the best Total Cost of Ownership
  • A structured eSourcing process (eRFP and eAuction) was initiated
  • Nearly 2.000.000 USD a year for several types of paint
  • Contract close to expiry and up for renegotiation

 


Solution

  • An eRFP was conducted as a prescreening for the eAuction and as clarification of TCO
  • A bidding template was made covering all types of paint, systems, technical data, expected docking, ports, volumes etc.
  • Surcharges identified in regards to expat inspectors
  • Documents like General Terms of Purchase, Standardized commercial terms etc. were uploaded to the eRFP
  • Based on incoming answers in the eRFP surcharges and quality was included as parameters in the eAuction - securing an evaluation based on TCO

Result

  • A very structured and organized process
  • 4 suppliers were invited to participate in the eRFP and were all approved for further participation in the eAuction
  • Duration of eAuction was 66 minutes including 18 time extensions
  • Savings of 11% were identified