Simple Juices = Simple Event = Simple Savings

Situation

  • A large European retailer was in need of substantial volume orange and apple juice for Q4 of 2015
  • Only two potential sources were qualified and the initial bids from suppliers were far apart
  • Client needed to factor different logistics costs and payment methods into the bids

Solution

  • Client utilized a Cherry Picking auction in order to have a clear line-by-line competition
  • A green/yellow/red traffic light system was used to encourage bidding

Result

  • Significant bidding activity with 114 total bids placed
  • 20 extensions
  • Savings of 8,94% relative to Target price
  • Supplier with payment and logistics advantage was still unable to beat price of incumbent supplier