Large European food producer generates more than $300,000 (50%) savings on cocoa powder with Reverse eAuction.
A large European food producer was looking to purchase cocoa powder for food manufacturing. There was a high level of competition, and suppliers were required to bid on one single product line quoting their DDP price per ton. All suppliers had different starting prices with an average starting price difference of 1.04%.
Scanmarket's client ran a traditional reverse auction with a single line for the total volume, and the e-auction winner would be awarded an order with a total volume of 200 metric tons. Four suppliers participated, and messaging was used extensively to encourage bidding activity.
Bidders were very active and significant savings were achieved. 27 bids were received in 29 minutes resulting in savings relative to current price totaling £228,400 GBP (50.04%).