Decided on Centralized Purchasing Strategy

Our client - a large International Brewery - ran a traditional CherryLot Auction for the purchase & lease of metal kegs and other brewing equipment. A selection of 18 different products was included in the eAuction with the aim of awarding a 1-year contract to the supplier with the best overall price per category. In order to increase the attractiveness of the order, a centralized purchasing strategy was used by summing-up volumes from 8 different countries (subsidiaries).

Ran Practice Auction Prior to Actual Auction

  • 6 suppliers were invited to participate in the eAuction
  • A mock auction was run prior to the live event. During this period the suppliers were able to log on to the system at their own discretion, place bids and utilize the Quick Call functionality for technical support
  • During the eAuction the messaging functionality was used to communicate with the suppliers and increase bidding activity
  • Stakeholders from the different subsidiaries were also invited to follow the auction
  • Not all suppliers could bid on all product categories
  • Scattered price structure on individual products

Savings of €4 million in 2 hours

  • 590 bids were placed during the eAuction
  • The eAuction lasted 130 minutes (including 37 extensions of 2 minutes each)
  • An average of 23.3% savings was made across the categories, amounting to a total of 4,122,550