A Scanmarket client was looking to identify a suitable real estate lease for one location encompassing office space, warehouse/manufacturing space, incorporating the service fee and the energy price. The total project spend was more than €6,000,000.
The client ran an RFP to identify suppliers with suitable real estate locations. They identified two suppliers that met their needs with very similar locations available for rent and similar pricing. Scanmarket then ran a fully managed eAuction to take advantage of the good competition driven by the market situation and to help identify the best price for the lease.
The auction drove total savings of 11.4%. The auction lasted for almost 2 hours and generated a total of 129 bids, with the two suppliers competing intensely for the winning position. The great result was a combination of the customer’s prior experience of eAuctions, their input and use of the right strategy when faced with two suppliers that offered very similar pricing, along with clear expectation setting with suppliers so they know the conditions and what is required of them to win the contract.