eAuction for Fast Savings

The buyer, a large European retailer, contacted Scanmarket on a Monday wanting to run an eAuction for labels on Friday that same week. Previous annual spend had been €1,240,000 across 4 countries and 44 product variants in total. The buyer had a strong wish to consolidate to fewer suppliers if possible.

Furthermore, the buyer was under time pressure as a contract needed to be renegotiated before a long holiday break that was just around the corner.  10 suppliers pre-qualified for the eAuction.

Supplier Training Prior to eAuction

  • Relevant documentation and information was collated and issued to selected suppliers
  • A CherryLot Auction format was chosen, with one lot per country each with up to 15 product variants
  • Not all suppliers were qualified for all country lots, so blindfolding was used
  • A parameter adjustment was added to one of the suppliers, as there was a single preferred supplier
  • Scanmarket conducted individual training sessions with suppliers, used as an opportunity to discuss bidding strategy and highlight supplier advantages like market price insight and fair competition
  • Most time was spent on personal contact with suppliers, ensuring they felt listened to and comfortable with the platform

12.4% Savings and Consolidated Suppliers

  • High bidding activity - more than 400 bids were submitted and all suppliers took part
  • €154,000 savings identified, which is equivalent to 12.4%
  • The buyer was very satisfied with the results and consolidated to 2 suppliers for labels