Existing Supplier was Not Competitive

A large retailer wanted to conduct an eAuction on selected cheese products. The annual spend was €5,676,150 and previously business had been held by a single supplier. However, after conducting a thorough RFI it turned out that the incumbent supplier did not qualify for an eAuction as prices were not competitive enough. Two new suppliers qualified - but was this enough competition to ensure a dynamic eAuction with just two participants? 

Selecting the Right eAuction Strategy

  • Due to the attractiveness of the order and the suppliers' desire to gain the business, a traditional Reverse eAuction was chosen
  • To enhance competition and make the business more attractive, several products were pooled into one lot, so suppliers were competing on total lot sums instead of individual items
  • This resulted in a CherryLot™ eAuction with two lots and a very close price structure per lot

19.99% Saved in 29 Minutes

  • 128 bids received in 29 minutes
  • Identified savings: 19.99%
  • €1,134,740 saved