8 Replies Latest reply on Feb 16, 2011 2:18 AM by Florian Boehme

    Relocation Services

    James McLaughlin Novice
      My company will be initiating an rfp in the coming weeks for relocation services. Does anyone have any experience facilitating a reverse auction for these type of services?
        • Re: Relocation Services
          Justin Fogarty Master

          James,

          Great question. I'm moving this thread to the Supply Watch section of Exchange since that's the area where we're fostering discussions on categories/commodities.

          Thanks

          Justin

            • Re: Relocation Services
              acinil Expert

              where is this Supply Watch section on Ariba Exchange. I've seen a lot of questions moved to that section but I can't see it. is the access restricted?

                • Re: Relocation Services
                  Justin Fogarty Master

                  Great question Linica and sorry for any confusion. When Ariba sold part of our services/consulting operations to Accenture, the Supply Watch "brand" went along with the deal. We've moved all of the relevant threads back into other parts of Ariba Exchange (such as this one, which now resides in Sourcing). However, there may still be some Supply Watch references throughout the site in comments and threads.

                   

                  Make sense? Any particular category/commodity the other members of the Ariba Exchange community could help you with?

              • Re: Relocation Services
                Pat Furey Newbie

                James,

                 

                Ariba's Sourcing Operations team has executed more than two dozen projects for relocation services and helped our customers source more than $220 million in annual spend in this category (in many cases using a reverse auction).  As such, we are very familiar with this market, and we have developed numerous best practices over the years.  Is there a specific area where you need assistance?

                • Re: Relocation Services
                  Florian Boehme Expert

                  James,

                   

                  we have recently done a full project (RFI, RFP, Auction) for relocation services. This was for a frame contract.

                  Spend € 1,5 Mn. and it respresents around 3.000 workstation relocations with some special moving activities (heavy,..).

                  The frame contract covers all relocation needs throughout the year and larger individual projects, that might be around 300-400 relocations at a time.

                   

                  The most difficult task was to establish

                  (1) Types of Workstations

                  (2) Gather historical data.

                   

                  Within this project with used the chance to harmonize (and optimize) SLA for suppliers.

                   

                  Within the RFP we went out to inquire several pricing structures, leaving it open for suppliers to choose, but also giving them direction to what our favorite price structure was. (As the company internally charges per workstation, this was the obvious way to got.)

                  (a) Pricing for Time (Labor) and Material

                  (b) Pricing for Workstation (Packages)

                  (c) Pricing for individual Furniture Types (Pieces)

                  (d) Pricing based on square meters

                   

                  Of course we had to bring in even more complexity for several location-location specific and internal (within each location) specific pricing.

                   

                  Main challenge in comparing best pricing structures was to have meaningful quantity data for (a) - (d).

                  We were only able to gather real historical quantities for (a) and (b).

                   

                  Last, but not least these were our event statistics:

                  Suppliers invited: 269

                  Supplier, who submitted RFI: 49

                  Supplier, who submitted RFP: 24

                  Supplier, who were invited/participated in the auction: 6

                   

                  Auction Set-Up (only with options (a) and (b)):

                  Event Type: Reverse Auction

                  Visibility: Ranking + Best Price

                  Minimum Time: 15 Minutes

                  Extension Time: 4 Minutes

                   

                  Auction Results:

                  Extensions: 6

                  Total Time: 36 Minutes

                  Bids received: 57

                   

                  While identified Savings are differentiating between the models, final implemented savings are +17%.

                  We also used optimization for analysing different award scenarios.

                   

                  Hope this helps,

                  good sourcing,

                  Florian