Using a Unique eAuction Format for a Unique Situation

Situation

  • A European retailer needed to find new sources of supply for multiple menswear items
  • RFI/P efforts had qualified seven suppliers
  • Initial supplier pricing indicated strong competition on some line items and limited competition on others
  • Client wanted to use eAuction to maximize savings potential from the event

 


Solution

  • To take advantage of the competitive landscape, the seven lines were split into two eAuctions:
  • Cherry Picking format used for four lines with strong competition
    • Full visibility to bids
    • Position (rank) indicators
  • Japanese Auction used for the remaining three lines with limited competition
    • No visibility on bids
    • No position indicators

Result

  • Cherry Picking Auction lasted for 40 minutes and provided 3,79% in total savings compared to current price
  • The Japanese Auction lasted for 55 minutes and provided 14,40% in total savings compared to current price
  • By thinking out of the box and splitting the eAuction into two different eAuction types, the client maximized the available competition and achieved savings on all products