Stationery Hospitality Sector

• Stationery was being purchased at individual unit level

• Central Purchasing consolidated the spend information and put it to auction

• Contract Broken down into 4 sections:

• Office Consumables, Branded Toners, Compatible Toners, Paper

• Each contract section had its own auction

• 17 suppliers took part with 8 suppliers bidding in all 4 auctions

• Ceiling Prices were fixed below current price levels to ensure an initial saving

• Original Contract Value £806,500 p.a.

• Lowest Total Bid Value after 4 auctions £417,000

• Total savings of £389,500 (48%)

• The 8 suppliers were then invited to bid in 1 final auction for the Whole Combined Contract

• Lowest Bid after final auction £325,000

Auction Benefits:

• Total savings of £481,500 (60%) which were implemented within 3 months

• Huge time savings in price negotiation phase

• Supply consolidated to a single supplier instead of up to 15 suppliers previously