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Standardizing Coffee Machines across Europe

Our client, the buyer, was looking to purchase coffee machines for different locations in Europe. The contract to be negotiated was for 1 year and the buyer needed 3 different types of coffee machines for 9 different locations in Europe. Spend for the previous year amounted to €13,199,710.

9 suppliers were contacted and the buyer wanted to allocate all business to 1 supplier.

1 Contract Negotiated through 1 Auction

  • 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

€3 Million Saved per Year

  • 54 bids received in 1 hour and 15 minutes
  • Achieved average potential savings of 26.34 %
  • €3,476,210 in savings identified