Pâté
A Scanmarket Savings Snapshot on Retail
eAuction on Pâté generated savings of 33%.
Challenge
Our client, a retailer, had previously only had 1 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.
Solution
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.
Result
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.