eAuction on Pâté generated savings of 33%.
Our client, a retailer, had previously only had one supplier being able to meet the specifications and quality requirements for pâté, but wanted to search the market for other suppliers. Initially, only 2 suppliers qualified to participate in the eAuction, whereof one was a new and unproven supplier. The new unproven supplier started the eAuction with a 4% lead.
2 suppliers were pre-qualified for the eAuction based on a thorough RFP and product testing. The buyer conducted a Cherry Picking eAuction as they wanted to show the incumbent supplier the new competition in the market - and use this new market dynamics to reduce current price.
The buyer received 57 bids in 49 minutes and ended up saving €432.000 (33%) compared to the previous annual spend of €1.310.000.