Case study

FEBRUARY 2020

Resourcing of transport flows using e-auctions

A major equipment manufacturer has reaped many benefits from organizing the resourcing of its main transport flows using e-auctions. Discover how.

In less than two months CKS, through its subsidiary CKS Auctions, has helped a major equipment manufacturer with the resourcing of its main European transportation flows – by ocean as well as by road.

The approach consisted of revolving the whole process around an e-auction from the outset. The gains were numerous.

Some figures

Challenge

In competitive markets, such as the transportation of goods, purchasing managers often face difficulties in striking a balance between the timely award of the market and the correct assessment and comparison of suppliers’ offers in order to negotiate the best prices.

Our mission was therefore to find a way to obtain the best prices for the routes with the highest spend while contacting all suppliers of the panel, in record time.

Unlike other purchasing families where suppliers can bring innovation and added value to the company, the transportation of goods is rather standardized and, as long as the carrier complies with the requested schedules, the conclusive argument is of financial order. But in this environment, it is often hard to bring forward arguments in order to convince carriers to decrease their prices.

The organization of an auction appeared to be the most effective way to put all carriers into competition simultaneously and to avoid spending time and energy into negotiating prices one by one.

Our approach

Our solution

For this mission, the service provided exceeded the one offered for a classic organization of an auction. Benefiting from a strong experience in organizing auctions within the Transportation sector, CKS has been able to :

CKS Auctions, acting as a partner in the organization of the auction and a trusted third-party, provided its client with an auction platform and proceeded with the following tasks :

In addition, our team proceeded to a regular follow-up to guarantee that the deadlines were met and acted as an intermediary to coordinate all parties involved (purchasing director, purchasing managers, and suppliers).

Our commitment

Example from Batch 1: Carriers make real-time bids and see how they are ranked against other participants. The carriers lower their prices as often as necessary in order to be ranked first at the end of the allotted time.

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