Snapshot - eAuction on Olive Oil


  • A large Nordic retailer wanted to conduct an eAuction on different kinds of Olive oils
  • A thorough RFP revealed that there was good competition between the suppliers on the individual products, but not on the total order
  • Spend €2.049.036 annually
  • Previously one supplier for all the olive products
  • Wanted one supplier for all products, but there was no competition on the total order


  • 4 suppliers were pre-qualified for the eAuction based on a thorough RFP and product testing
  • Even though one supplier, by far, was the overall cheapest, he was not cheapest per product. Resultantly, a Cherry Picking eAuction was chosen to exploit the good product line competition
  • The new suppliers had a switching cost of around 0.5% added to their cost price to ensure competition on total cost
  • Thorough supplier trainings were conducted to ensure that the suppliers understood that our clients preference was to have one supplier for all products despite product line competition in the eAuction


  • High bidding activity - 182 bids submitted
  • The eAuction lasted 97 minutes including 41 extensions of 2 minutes
  • €125.147 (6%) saved compared to current price
  • One supplier for all olive products

Good supplier conditioning helped the buyer achieve a good overall saving despite the low overall competition.