Lantmännen is an agricultural cooperative founded on the deep knowledge that farmers have acquired over generations. Lantmännen makes farming thrive and work together to take responsibility from field to fork. From their core farming business, through the value chain, Lantmännen is involved in every step from sowing to harvesting. Owned by Swedish farmers, Sweden is Lantmännen's base with the Baltic Sea area as their expanded domestic market.
Lantmännen needed an efficient eSourcing tool to handle several ongoing negotiations simultaneously. They also needed to compile the collection of RFx-data from the suppliers in a more structured format so they could re-use the information for decision-making and on repeat negotiations. "With Scanmarket, this is easy because you save the data in the platform and it can easily be reached by all users at any time. Before, the usual way of working was that a person saved the data on its own desktop and frequently, when it was time for re-negotiation, the entire project would need to be recreated." says Josefin Kronstrand, Head of Procurement at Lantmännen, and continues.
"The reason we chose Scanmarket was because of its simplicity for both internal users and for the questioned suppliers. Training is seldom required for bidders. We initially bought only the eRFx tool and then extended to the eAuction tool as well.
Implementation of Scanmarket was extremely smooth. Training from the Scanmarket-team was good and we could get started very quickly. Using the Quick Call for support is simple and the support is fast and professional.
eAuctions result in larger savings
The categories where we use Scanmarket are wide-ranging, including direct and indirect material also, with commodities that have widely fluctuating market conditions and pricing. Using the eAuction tool, we achieved ROI from the first event, including both cost savings around 10% and increased work efficiency.
Keys to success
For new users just getting started on the journey, we have several words of advice:
1. For your early events, run test projects with internal stakeholders. By making them take the roles of bidders and buyers, you can confirm that all your documents are understandable and allow for competitive bidding
2. Take full advantage of the eLearning module. There’s a wealth of information there that can be extremely helpful
3. Pay attention to the kinds of questions you use, especially in the RFI and RFP phase. While it may be advantageous to collect significant qualitative information, keep in mind that qualitative responses can require additional thought and effort for evaluation. Questions that are more specific and quantitative will be easier to compare across bids"
Our goal is to continue spreading the knowledge internally about the benefits of the tool and to show best practices to achieve a higher usage and increase internal user-profiles. We plan an intense increase in activity the coming years, especially in eAuctions.