Increasing Competition Using eAuction
A European retailer needed to find new sources of supply for multiple menswear items. Their RFI/RFP efforts had identified 7 qualified suppliers. Initial supplier pricing indicated strong competition on some line items and limited competition on others. To maximize savings potential from the event, the client wanted to use eAuction.
Using 2 eAuction Types
To take advantage of the competitive landscape, the 7 lines were split into 2 eAuctions:
- A Cherry Picking format used for 4 lines with strong competition
- Full visibility to bids
- Position (rank) indicators
- A Japanese Auction used for the remaining 3 lines with limited competition
- No visibility on bids
- No position indicators
Savings Achieved on All Products
- The Cherry Picking auction lasted 40 minutes and provided 3.79% in total savings compared to the current price.
- The Japanese auction lasted 55 minutes and provided 14.40% in total savings compared to the current price.
- By splitting the eAuction into two different eAuction types, the client increased the competition and mazimized savings on all products.