A popular UK food franchise ran an auction as the second stage of their negotiations with their suppliers, for their annual estimated volume of fish fillets, to be supplied to multiple restaurants locations across the UK.
The company was already using Scanmarket eRFX and eAuction applications to drive savings but worked closely with their Scanmarket customer success manager on this specific auction in order to leverage maximum savings, whilst ensuring the required quality.
The client initially ran an RFx, to establish the level of market competition and that quality requirements were met. The post RFx analysis identified 6 suitable suppliers which were invited in to a Cherry-picking auction to compete on this product line as a final negotiation stage, prior to volume award.
This auction culminated in an impressive saving of 10.14% from the initial RFQ price.
The auction generated a total of 76 bids in 1 hour and 6 minutes, with all 6 suppliers bidding in the first 20 minutes, and the final 2 supplier competing intensely until the end.
Much to the client's surprise & delight it was an unexpected result considering the current economic climate, and a dramatic inflation of food prices globally.
eAuctions once again proved to be a powerful tool in both generating savings and tracking decreasing market prices, whilst never compromising on quality & service.