In the past, Super-Max has been successfully negotiating better pricing with suppliers using online auctions. However, they were not happy with conducting mere reverse auctions since the diminishing returns from them did not justify the subscription fees any longer. Also, the auctions were conducted by an external agency which added to the costs.
The dilemma for Super-Max was that they wanted to continue negotiating with suppliers online, but they needed to do more than that to justify further investment in such a solution.
Super-Max started looking at ways to make its sourcing process more efficient. These would involve standardizing processes and allow it to accomplish much more via eSourcing. After the necessary market outreach and due diligence, Krinati Solutions was shortlisted and the two companies had initial discussions on the added value Super-Max could achieve – do more RFPs, focus on team collaboration and knowledge templates. Auctions will continue to be used where applicable, including Reverse & Dutch Auctions for the purchase of goods & services and Forward Auctions for the sale of scrap. This would drive compliance for a greater part of the sourcing process, make it more transparent and involve all key decisions in the supplier selection process.
A strong pipeline of sourcing projects was identified. Focused onboarding sessions were conducted by the Krinati team on both the solution and the softer issues of supplier management. The team now understands the importance of online RFPs, the do’s and don’ts of online auctions, and the means to maximize supplier participation.
With greater productivity and an established process, the team has more time to identify and shortlist the right suppliers for the business.
