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Benefitting from 2 Competitive Suppliers

Due to limited supply and fishing quotas our client, a large European retailer, needed to lock in herring supplies of more than €3 million to prepare for the busy Christmas season. While there were only 2 truly qualified suppliers, the information received from the RFx process pointed to a highly competitive market.

Feeding the Competition

  • Given the competitive bidding profile, the qualified suppliers, and the relatively high volumes the buyer chose a traditional List eAuction format
  • The buyer utilized green/yellow/red traffic light system to provide supplier visibility to their own bid placement and to encourage bidding
  • The format allowed for multiple line items (11) and the ability to make a single award

Savings are Not a Red Herring

  • High bidding activity – 390 bids submitted
  • 60% of bids came from the non-incumbent supplier
  • The event lasted nearly 3 hours and included 76 extensions
  • Significant savings of €362,000, (11.7%) were achieved compared to the current price