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
