Semi Skimmed Milk – Healthcare Sector
•
Negotiations had stalled with incumbent
demanding a price increase
•
Speed was important so the auction was held
within 1 week of the decision being made
•
One basic specification
•
6 suppliers took part
•
No ceiling prices
•
Original Contract Value £613,000 p.a.
•
Lowest Bid £540,000
•
Auction Benefits:
•
Total saving of £73,000 (12%) which was
implemented immediately
•
Instead of an increase, the buyer made a
saving over current price
Labels - Food Manufacturer
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Divided into Printed and Plain
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9 suppliers took part
•
Ceiling Prices were fixed at current price
levels to ensure no price increase
•
Original Contract Value £1,391,000 p.a.
•
Lowest Bid £993,000
•
Auction Benefits:
•
Total savings of £398,000 (29%) which were
implemented within 5 months
•
Short time scales enabled Buyer to include
more suppliers than previously possible
Telecoms – Local Authority
•
Call Traffic information collated into
sectors:
•
Calls to: Landline National/Local, Mobiles,
Peak, Off-Peak, Weekend, etc.
•
7 suppliers took part
•
Ceiling Prices were fixed below current price
levels to ensure an initial saving
•
Original Contract Value £347,000 p.a.
•
Lowest Bid £267,000
•
Auction Benefits:
•
Total savings of £80,000 (23%) which were
implemented within 1 month
•
Huge time savings in price negotiation phase
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
