Rasp AUS +61 (0)2 8090 9060   NZ +64 (0)9 887 0480 ARCUS
ARCUS e-Auctions cost reductions

e-Negotiations and e-Auctions in Retail

Shopping CentreWhilst e-Negotiations for indirects are common across many industries, retail also has a considerable number of unique categories that have been successfully price negotiated through e-Negotiation. Examples include house brand products (the most common category), carrier bags, trades rates, security services, shelving, roll cages, supermarket trolleys, shopfitting, lighting and so on.

The bid charts below are a few examples of successful e-Negotiations that have been run for retailers using the ARCUS e-Auction system.

Loyalty Cards
ARCUS e-Auction Bid chart - Loyalty Cards

Plastic CardLoyalty programs are a permanent and growing feature of the retail industry. According to The Australian Centre for Retail Studies at Monash University, 63% of retailers now run a structured loyalty program, most of which incorporate an associated loyalty card.

The e-Negotiation shown above was for the supply of loyalty cards for a supermarket chain. There are two notable characteristics of this negotiation: First, the price drop of approximately 38% from opening to closing bids suggests an industry that is used to achieving high margins. Secondly, the aggressive bidding by all suppliers resulted in a considerable number of extensions and, combined with the significant price drop, points to a very competitive market place.

House Brand
ARCUS Reverse Auction Bid Chart - Tinned Sweetcorn

SweetcornThe most common category chosen for e-Negotiation by retailers is house brand products - both food and non-food. The example shown above is for tinned sweetcorn. Notice the 'true market price cluster' of 3 suppliers that have all finished within 1.5% of each other. This allows the buying organisation to make their final decision almost exclusively on the qualitative ratings of those three suppliers as pricing is no longer a differentiating factor. This 'clustering' is a common characteristic of e-Negotiations.

Carrier Bags
ARCUS Reverse Auction Bid Chart - Carrier bags Carrier bags

Bags, whether they be plastic, paper or cloth are an essential and costly component of retail. This bid chart shows a competitive market with a cluster of 4 of the 6 suppliers finishing within 2% of each other.

Contact Us

Your Full Name

Your Organisation Name

Your Phone

Your Email Address

Your Message

ARCUS Supplier Management, Contract Management and e-Sourcing Platform

ARCUS e-Auction Demo Video
Factsheet ARCUS Supplier Information Management (SIM) system for pre-qualification and compliance management of suppliers and contractors

ARCUS eRFx online tendering system

ARCUS eAuction system and eAuction management services

ARCUS Supplier Contract Management (SCM) system for automated contract lifecyle management and central storage of agreements

ARCUS Supplier Performance Management (SPM) for automated tracking of supplier and contractor performance. Supplier Performance Management System.