Cheese
A Scanmarket Savings Snapshot on Retail
Cherry Lot eAuction implemented on the Scanmarket platform saves client more than $1 million in less than 30 minutes.Â
Challenge
A large retailer wanted to conduct an e-auction on selected cheese products. 1 supplier had previously held the contract exclusively with an annual spend of €5,676,150. After conducting an RFI, the incumbent supplier did not even qualify for an e-auction as prices were not competitive enough. 2 new suppliers qualified, but the client wasn't sure if it was enough competition to secure substantial savings.Â
Solution
A Reverse auction format was selected based on the client's objectives. To enhance competition, several products were pooled into 1 lot so suppliers were competing on total lot sums instead of individual items.
Result
A Cherry Lot eAuction was implemented on the Scanmarket platform with 2 lots and a very close price structure per lot. 128 bids were received in 29 minutes saving €1,134,740 (19.99%) in 29 minutes.Â
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