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
