Autumn 2007

Thorntons, the high street and online confectioner, has been using online reverse auctions to attain optimum value in its procurement activities.

The company has chosen Wax Digital to deliver a series of managed reverse auctions. It says that in a recent exercise involving the supply, installation, maintenance and servicing of air conditioning equipment in 200 of its stores, it achieved a six-figure cost saving.

In this case the procurement was a two-stage process. Initially the company used traditional means to draw up a supplier shortlist and initiate negotiations, and from this it arrived at a final price that became the benchmark for the sourcing event.

Then it took the contract to auction, and says this brought a further 15 per cent saving beyond the benchmark figure.

Wax Digital has since advised on and managed sourcing events for Thorntons in a variety of product categories - anything from diesel to hazelnuts. In every case, the process is said to have delivered a significant return on investment.