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Challenge
A large European retailer was in need of substantial volumes of orange- and apple juice for Q4 of 2015. Only two potential sources were qualified and the initial bids from suppliers were far apart. Also, the buyer needed to factor different logistics costs and payment methods into the bids.
Solution
The buyer utilized a Cherry Picking auction in order to have a clear line-by-line competition and used a green/yellow/red traffic light system to encourage bidding among the suppliers.
Result
The event achieved significant bidding activity with 114 total bids placed, 20 extensions and identified savings of 8,94% relative to Target price. The supplier with payment and logistics advantage was still unable to beat price of the incumbent supplier.
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Public Sector (Danish)