Removing Time-consuming Negotiations

The buyer, a major European retailer, wanted to re-negotiate land freight for 2016-17. The goal was to create a freight catalog containing prices, lead times and delivery modes for EMEA. The freight catalog would be used in last minute delivery situations enabling clients to easily pick the best delivery mode without time-consuming negotiations. Quotes were requested for multiple destinations in 9 different countries. Ultimately, 11 suppliers were invited to participate in the eAuctions.

Bids for Different Delivery Modes

  • Two CherryLot Auctions were created, each with one lot per country and multiple lines in each lot corresponding to the different destinations.
    • 1st CherryLot Auction contained 6 countries, with 1-7 destinations in each lot.
    • 2nd CherryLot Auction contained 4 countries with 5-15 destinations in each lot.
  • Suppliers were required to bid for two different delivery modes: Full truckload with boxes and full truckload with garments on hangers.
  • For the remaining destinations with low volume, an RFQ CherryLot was run after the primary eAuction. Bidders requested to match savings from the primary eAuction.

Increased Average Savings

  • All suppliers participated actively in both eAuctions
  • Average savings achieved relative to current price:
    • 1st eAuction: Average savings of 8,50% 
    • 2nd eAuction: Average savings of 5,63% 
    • RFQ for low-volume routes: 7,65% savings