Seeing is Believing - sharing success stories internally is the best way to promote your eSourcing program

Situation

 

  • In many organizations, the biggest hurdle to the implementation of a successful eSourcing tool is the internal resistance and skepticism of the sourcing department.

  • One of the ways of getting over this hurdle is to showcase your success stories and demonstrate just how easy it is to set up and manage eSourcing events.

  • A large DIY & Construction Materials retailer needed to promote eAuctions internally by showcasing success stories to new buyers

  • The company decided to run a live eAuction during their annual eSourcing conference

  • 22 products were selected (garden accessories)

  • 2 suppliers were prequalified


Solution

  • The event type List Auction was used so that the suppliers would compete on the total sum rather than per product line
  • Even though only 2 suppliers were prequalified, the level of competition between the suppliers was very good (less than 1% difference in between start prices)

 


Result

  • The event lasted for 38 minutes with 117 bids
  • Retailer saved 24.8% vs. current price
  • eSourcing program leader received multiple interest calls from buyers regarding new eSourcing projects
  • Program volume is steadily increasing!

 

 

Showcasing the eAuction proved to be an extremely successful method of creating interest in the usage of eSourcing tools. The Super User of the company reported that subsequent to the eSourcing conference, the sourcing managers or various product subcategories expressed their interest in setting up similar events.

Two months later the number of tenders and auctions run by this customer is steadily increasing and new product categories are being included in the proces.