Internal Reverse Cherry Lot Auction drives 15% savings 

Challenge

Unit4, a leading cloud-based enterprise software provider and the parent company of Scanmarket since last year, was in need of IT consultancy services. Their objective was to conduct penetration tests on their ERP system, intending to bolster and enhance their global operations.  

Solution

The Unit4 Global Procurement team ran an initial RFQ through Scanmarket’s eRFx module to evaluate market prices and transferred selected suppliers to an eAuction. A total of 3 suppliers were vetted and then invited to participate on a Reverse Cherry Lot auction to compete across 18 distinct product lines, each associated with a different IT consultancy service.  

Result

During the two-hour auction, there was a remarkable level of bidding activity, with a total of 188 bids placed. Notably, apart from price, a quality parameter was introduced as a crucial bidding factor in this auction. Two suppliers engaged in a fierce competition that persisted until the very end, ultimately resulting in a substantial 15% total savings achieved from the winning supplier.