Air and Sea Freight client saves more than $1 million (22.54%) with four list e-auctions.
A Scanmarket client wanted to conduct their negotiations on Air and Sea Freight in an e-auction, but it was not possible to integrate all 1000+ lanes into one e-auction. With annual spend of almost €4 million, eight suppliers were qualified to bid.
To increase visibility for suppliers, Scanmarket arranged 1,000+ lanes into four lots based on destinations. Within each lot, the suppliers could bid on three lines, full container loads (FCL), less container loads (LCL), and air. The client wanted suppliers' focus to be on each lot, so we conducted four list e-auctions, one for each lot. Suppliers were able to see if they were leading in the bidding, both on the total lot and per sub-total as supplier positions on sub-totals could influence the final order allocation. The results gave our client full visibility of all individual lane prices and allowed the suppliers to compete on a few sub-totals.
Four list e-auctions drove total savings of €889,429 (22.54%) with 321 bids in less than 3 hours.