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.
During the pandemic, adoption of Krinati Sourcing helped us become more productive while remote. We use Krinati for RFPs and Auctions – both reverse and forward. With several categories being negotiated frequently due the volatile pricing, the solution helped us significantly reduce sourcing times.
Not only was the investment on Krinati recovered within a few weeks, but the adoption of the solution introduced best practices in the sourcing function.
The Super-Max buying team was now hands-on and a part of the change, hence greater ownership.
RFPs are published in minutes and supplier prices received equally fast. Purchase Orders are instantly awarded to the most competitive bid received online making the entire process more ethical and transparent.