eAuction on Coffee Machines - savings of 26,34%

Situation

  • The client was looking to purchase coffee machines for different locations in Europe
  • The contract was to be negotiated was for one-year
  • 3 different Coffee machines to be purchased for 9 different locations in Europe  
  • Spend was € 13.199.710 a year
  • 9 suppliers were contacted
  • Buyer wanted to allocate all business to 1 supplier

 


Solution

  • The suppliers were requested to pre-quote prior to the eAuction
  • Pre-quotations were entered as individual starting prices in the eAuction
  • Some suppliers were not able to bid on all machines, so a Cherry Picking auction was chosen and suppliers were blindfolded on these items
  • To simplify the auction set-up, suppliers were asked to quote a total price per machine including all destinations, and 3 product lines for each machine were created in the auction

Result

  • 54 bids received in 1 hour and 15 minutes
  • Achieved average potential savings of 26,34 %
  • € 3.476.210 savings identified