Tuesday, 7 June 2016

[Case Study] Specsavers: 'Should’ve gone to Market Dojo!'

Jasper Raby is an interim procurement pro, currently based at Specsavers. With his wealth of experience in Procurement and sourcing, Jasper was brought in to Specsavers at the point when they were looking to move away from email and spreadsheets to a more centralised solution. Through Jasper’s expertise, and sharing the Market Dojo philosophy of ‘making eSourcing simple’ to drive adoption, he was able to strategically implement new technologies at Specsavers, identifying hidden savings.


How did you hear about Market Dojo?
I met Market Dojo at eWorld in 2013 and first spoke to one of the co-founders, Nick Drewe. I had just left Kingfisher and was looking for another role. Nick and myself chatted for a while at the conference and it went from there.

What do you like about Market Dojo?
The company and people are intuitive, young and of an enthusiastic nature.

What made Specsavers choose Market Dojo over other providers?
Market Dojo is very easy to use, a true SaaS application meaning it can be accessed anywhere as data is stored in the cloud. But more importantly, makes it a very cost-friendly solution.

How do you use Market Dojo?
We started off by running a few low risk, low value auctions.

The first auction was for the provision of cleaning services. We chose to start with this as it was relatively low risk, we already had quotes from suppliers, and simply conducted the negotiation phase via eAuction.

The requirements were different to the previous contract so unfortunately we were not able to claim savings, although we definitely drove some of the costs down. Thus proving to both the Specsavers team and our suppliers that reverse auctions are feasible.

We then moved on to a slightly more complex category - security guarding for offices. We weren’t 100% satisfied with our incumbent, so needed to negotiate.

We ran an end to end process involving: RFI > RFP > RFQ > Auction. The process worked well, initially selecting known companies, plus sourcing new ones online.

The tender itself involved sourcing security personnel for two locations: Hampshire & Nottinghamshire. The auction was made up of two lots reflecting these locations. We saw a saving of 10% which was a good success due to the contract being labour-based and the fact we had not seen any price movement for a few years.

The biggest barrier we faced from suppliers was that they weren’t comfortable on a price-only negotiation. We stated that business would not be awarded to the lowest bidder, and that price, quality and service were all factors.

What is your most notable success using Market Dojo?
Specsavers ran an auction in November 2015 for the supply of components for glasses with a multi-million pound value.

The auction duration was set to 30 minutes with a five-minute dynamic close. A total of five suppliers participated in the auction, with a couple being rejected prior to the auction as their qualification bids were not sharp enough. The auction ran for 35 mins in total with 19 bids received. On a direct category, this saving of 16% was brilliant, amounting to nearly one million dollars!!!

How will Specsavers continue to use Market Dojo?
Specsavers is running a full value of tenders online varying from services through to products. Where appropriate, these will be run through to eAuction. Specsavers will be looking to use Market Dojo as a ‘business as usual’ tool and regard it as an integral part of their negotiation toolkit.

Lastly, what is your favourite thing about Market Dojo?
The name!

“Market Dojo helps bring simplicity to a complex procurement environment”
- Jasper Raby

We’ll just finish with this advert…

Market Dojo helps procurement professionals negotiate better with our on-demand eSourcing tools. If you’d like to find out more, get in touch or register for free and play around with our software for yourself!