One of the crucial elements of any Reverse eAuction platform is its usability for suppliers. Often overlooked in favour of hosts (typically the paying client for eSourcing solutions), the ease-of-use of a reverse auction platform has a direct correlation to the level of competition.
We got in touch with a freight supplier who had been using Market Dojo as a participant for his perspective on our software. Joel Ziemek from Direct Connect Transport has been using Market Dojo for the last six months and participating in numerous reverse eAuctions held by Aggreko plc.
Here’s what Joel had to say:
Tell me about yourself?
I am an account manager for Direct Connect Transport, we specialise in freight haulage across North America.
How did it start?
We were eager to work with one of Market Dojo’s clients; Aggreko plc. After getting in touch with Aggreko and completing their vetting process they initially invited us to participate in a single reverse auction. The eAuction was for their long-distance road freight needs across Minnesota hosted by Market Dojo software. Since taking part in the initial eAuction, we have been actively participating and tendering bids for over 20 reverse auctions a month. Having the ability to participate in these auctions has made a real impact on our business.
Have you ever participated in a Reverse Auction before?
To be honest with you, I had never heard of a reverse auction before Aggreko invited us to participate. Obviously, without knowing what I was getting myself into, I did some research prior to participating in my first auction. However, the majority of what I have learned has come from using the system and taking part in auctions.
What do you like about Market Dojo?
Well for one it is really easy and simple to use. The layout is very straightforward and as a freight supplier, I can see the full event details on the overview screen. Typically they include the origin, destination, cargo etc. We find this particularly useful because it comprises of all the details that we need to participate in an auction or quote for a specific job.
One of my favourite aspects as a freight supplier is that I get instant feedback when participating in an eAuction. It saves me a lot of time and hassle in comparison with chasing a quote. But with the ranked auctions events that are set up by Aggreko. We know at the auction close where we placed and whether we were successful in the event.
What have you found really surprising about Market Dojo and eAuctions?
How fun it is! I love my job and I find quoting on jobs really rewarding, but directly competing with other businesses adds another level of enjoyment and excitement. It’s a great feeling in winning an auction and being ranked 1st knowing that you have won the business.
What do you think that Market Dojo can do to improve?
I really like the system, but the layout of the event pages could be improved. Just so that I can better navigate between multiple live events.
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![Case Study] Aggreko create ‘Freight eMarketplace’ using the Market Dojo tool
Chad Thibodeaux is the Central Logistics Manager for Aggreko North America-Americas. His duties involve the strategic sourcing for Aggreko’s transportation needs
When did you first consider using Market Dojo?
At Aggreko, we are the leading global provider of modular, mobile power, cooling, heating and air solutions. We supply to over 100 countries including to a number of major events such as the PGA tour and Formula 1 Race Days. This is in addition to our regular deliveries of rental solutions and power solutions to refineries, power plants and major construction sites.
We use multiple modes of transportation services to get our equipment moved throughout North America, but for the sake of this conversation, I will divide it into two major categories: local & long haul deliveries. The field service centres that are in close proximity to the delivery location are categorised as ‘local deliveries’. For the majority of these deliveries, we use regional service providers to deliver the equipment. For all of our long-haul deliveries which are further away from our service centres, we use approved service providers that can cover a much larger territory.
Initially, we recognised an opportunity change the way in which we procured our long-haul freight needs. For a number of years, it had been the responsibility of the local service centre teams for the arranging of vehicles and suppliers to long-haul destinations.
However, we felt that if we centralised our long-haul needs into a single central procurement team we might be able to generate high levels of savings and gain greater visibility on our spend. It was at this point that we considered using a tool that included an eAuction solution as it would give us the greatest potential for savings. We were recommended Market Dojo by a partner and have since been implementing it globally.
How have you been using Market Dojo?
Specifically, we’ve been using Market Dojo to create a ‘freight eMarketplace’, centralising all of our long-haul freight needs in North America and reducing costs through Reverse Auctions with suppliers. We have used our list of existing suppliers in addition to specifically chosen new suppliers to generate increased competition for each of the lots. Part of my role as the Central Logistics Manager is to liaise and manage suppliers and to oversee the outsourcing long-haul freight project.
What is your overall aim of using Market Dojo?
Our overall target is to capture and relay the data on a large scale, using those teachings to create further savings and thus getting better value for money, without compromising either the service from our supplier or the quality of service that we provide to our customers.
From the success that we have already had, it’s obvious that we will always be using an eAuction tool. Simply, the success has far exceeded any of the negatives and hopefully, we can continue to streamline and adopt the process on a greater scale.
What challenges did you face with the Freight eMarketplace?
Initially, we struggled with centralising all of the long-haul needs in North America to the new central team. Previously each of the field teams had organised with suppliers for deliveries in their local areas. However, we quickly found that in the past both our local teams and the suppliers had been using a different process to organise deliveries. Consequently, it took time for all of the suppliers to adapt to the new system.
Another issue was the resources needed to manage suppliers. Previously the workload had been spread across numerous teams in the continent. However, we found that with the workload we had to create an internal place within the central team to manage those vendors.
What didn’t you consider until you started the eMarketplace?
One aspect that we didn’t realise was the importance of sending a clear and consistent message to the freight suppliers regarding the eAuctions. In the freight transportation industry, eAuctions are not the norm. Therefore we had to educate many of our suppliers as to the process. At the start, we found a few issues with suppliers such as aggressively bidding but being unable to meet their obligations.
What have you heard back from suppliers?
To be honest, we have heard mixed feedback from suppliers. Some suppliers are unhappy with the process, mostly because those suppliers had previously been awarded a larger amount of business and only had to compete with a small number of other suppliers. Whereas we have heard very positive feedback from other suppliers regarding the process such as the immediate awarding of lots on completion of the eAuction and the increased level of competition, allowing for a greater number of suppliers to be considered.
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!eWorld Sept 2016 – A Brave New World
This years eWorld Procurement and Supply Summit was a first time for three members of our team. All of us armed with the prior experience of tradeshows but were surprised by the range of procurement innovations and technologies on show.
Having travelled down to the QEII Centre from our office in the south-west, we were able to enjoy a few of the sights of Central London in the very early hours of the morning as we walked across Westminster Bridge and past the likes of Big Ben and the Houses of Parliament.
As we arrived it was a hive of activity with our business development managers getting ready for the day and early delegates arriving eager for the opportunity to discuss the very latest progress in procurement technology.
We also had the time to ‘get involved’ with some others that we saw at the event, such as the team from Procurious who were running their social media clinic and some of the presentations that we going on throughout the day.
However the highlight of the day was the presentation from Nick Drewe of Market Dojo and Nick Ford of Odesma discussing the ‘Transforming Aggreko to Procurement Leaders’ (which will shortly be released on our resources page).
Once we got back, it was time to choose the winner of our eWorld competition and Adam Creme from Innovators International was the lucky individual to win a free month’s license of Market Dojo’s software.
A big thank you to Claire Boffey and all of her team at Revolution for the amazing event as well as everyone who took the time to attend and participate in the day.
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!The Dojo 6 years later….
According to Statistic Brain, there is a 60% chance that we should have failed by now – may the odds be ever in our favour! As it happens, the last 12 months have been fantastic.
Here are some of the highlights:
This time last year we were delighted that our registered users had increased by 53%. Well, this year we’ve seen a further increase of 57%, showing no sign of slowing down. We’d also like to congratulate Daymark for becoming our 100th paying client, joining some other fantastic clients this year including:
We’ve also seen a 100% renewal rate on our annual clients, a testament to the value our software has brought them, giving us such a great foundation to grow from. We even have our first client, Hamworthy Combustion, still on our books since joining us when we were just a few months old!
Anyhow, bottom line, or should we say the top line, is that our revenues expanded by 53% compared to last year, exceeding our 50% target. But we’re not going to stop there. Our target for the next 12 months shall be 62.5% growth, which we think is realistic because….
Our expanding team
In the last 6 months, we’ve brought in Lewis, Pete and Craig to bolster the sales and marketing team. For reference in the photos, purple shirts are not our corporate uniform, must be a millennial thing!
We’re not stopping there either, as we’re currently advertising two further roles, one in sales development and the other in software development.
This summer we’ve had the enjoyable view of watching our new premises being built across the road from our current office. It’s nearly double the size and will give us room to grow for at least the next 12 months. Here’s how it looks today, taken on a classic British summer’s day!
Lastly, our year of success wouldn’t be complete without some amazing progress across our product offerings. This year we’ve announced 8 major releases, plus countless minor enhancements.
We even managed to launch a whole new module, SIM Dojo, developed in collaboration with PHS Group, who simply could not find an intuitive, self-service and affordable supplier information management solution on the market.
We also released the multi-currency feature to let participants bid in their preferred currencies, yet keep the bid comparisons in the currency of choice for the client.
And finally, another highlight was the MBA student project where we released our initial Analytics tool to be able to assess your eSourcing efforts at a high level across your company. We’ve seen some hugely impressive statistics as well, with some clients averaging over 50% saving across more than 1000 spot eAuctions – more on that to follow!
So, in summary, it has been a great year but really, the journey is still just beginning. Thanks again to all our wonderful clients and partners, look forward to more to come.