Using SoftAuctionTM technology to maximize savings
Background:
A client in the Retail Apparel Industry wanted to streamline ocean freight bidding, rid themselves of time consuming manual analysis, and streamline communication. FlexRFP™ with Supplier Bid Feedback was the way to timely savings.
Project Goals:
- Understand supplier willingness to bid on a per lane basis
- Reduce analysis and reporting time
- Communicate with suppliers in an orderly fashion
- Maximize savings
Execution Strategy:
- Invited over 10 carriers to participate
- A 20 question RFI was developed to qualify suppliers on important service criteria
- Setup over 500 items (lanes) for bid using upload from excel feature
- Suppliers compiled their bids in Excel and then uploaded them into FlexRFP™.
- FlexRFP™ analysis and reporting module was used to rapidly analyze suppliers’ bid performance
- FlexRFP™ auto generated supplier bid feedback reports (see example below).
- Feedback reports were provided to suppliers in-between RFP bid rounds online.
- Secondary bid round data was uploaded into FlexRFP™ in the same manner as 1st round
Results:
- Project start to finish time was reduced by 35% versus previous years
- Project savings were approximately 19%.
- Suppliers did not complain about the multiple round aspect of the project with feedback.
- Project was easy for suppliers
Other bid feedback options:
- Can use other bid feedback options: best bid and quartile ranking (hidden in this example)
- Report is available on-line for viewing or can be dumped to excel
- Buyer chooses bid feedback range (example above is 5 (1-5%, 6-10%, etc.)
