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Limited competition for your eAuction? No problem!
International shipping company required new radio communication systems for multiple vessels
Radios had been sourced from same supplier for years
The buyer responsible for the category wanted to challenge the existing supplier relationship by auctioning the volume
Buyer was concerned there would be limited competition due to relatively low value of the order
Initial conversations with suppliers revealed considerable differences in prices
A Dutch Auction was set-up to accommodate the potential limited competition
Suppliers asked to accept Terms & Conditions etc. upfront so price was only negotiation point
All potential suppliers logged in indicating that they were interested in the sale and that they accepted the Dutch Auction format
A Dutch Auction closes as soon as supplier chooses to accept the price suggested by the buyer
The Auction was closed 52% lower than the current cost
minute eAuction saved the buyer 52% compared to current cost!