Situation
Due to limited supply and fishing quotas our client, a large European retailer, needed to lock in supplies of more than 3MM Euro in herring to prepare for the busy Christmas season. While there were only two truly qualified suppliers, the information received from the RFx process pointed to a highly competitive market.
Solution
- Given competitive bidding profile, qualified suppliers and high volumes, buyer chose a traditional List eAuction format
- Client utilized green/yellow/red traffic light system to encourage bidding
- Format allowed for multiple line items (11) and ability to make a single award
Result
- High bidding activity – 390 bids submitted
- 60% of bids came from non-incumbent supplier
- The event lasted nearly three hours including 76 extensions
- Significant savings - €362.000 (11,7%) compared to current price
