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Traditional Reverse eAuction for Cocoa Powder

Our client, a large European food producer, was looking to purchase cocoa powder for food manufacturing. The eAuction was conducted as a traditional Reverse auction with just a single line for the total volume. Bidders were very active and significant savings were achieved.

Active Bidders and High Competition

  • 4 participating suppliers
  • Suppliers were required to bid on one single product line and quote their DDP price/ton
  • Single eAuction winner to be awarded an order with a total volume of 200 metric ton
  • This event was run as a traditional reverse auction
  • All suppliers had individual starting prices
  • There was a high level of competition with an average starting price difference of 1.04%
  • Messaging was used extensively in order to encourage bidding activity
  • The leading bid was shown during the first 24 minutes of the auction

50% Savings in 29 Minutes

  • Very dynamic bidding activity
  • 27 bids received in 29 minutes
  • 14 extensions
  • Savings relative to current price: 50.04%
  • Identified savings: £228,400 GBP