We have conducted auctions for numerous large companies in Germany and other European countries. Among the most prominent of these companies are:
- Beiersdorf AG
- Heidelberger Druckmaschinen AG
- SCHOTT AG
- tesa SE
- Carl Zeiss AG
For all references, also for other companies not listed here, we will gladly put you in personal contact with the respective responsible persons.
It was quite convincing how perfect transparency gave us a considerable negotiating advantage over the provider; this went so far that we actually knew far more about the cost function of the tariffs than the provider itself.
Based on the market information available to us, we knew that we had already purchased our mobile tariffs at good conditions. Against this background, we could not even begin to expect such high savings.
In terms of both savings and work efficiency, Feldwerk has clearly exceeded our high requirements.
Feldwerk's technology convinced us not only in terms of the savings achieved, but also with regard to our high data protection requirements.
What Feldwerk can do with its technology in terms of optimisation calculations and thus realise savings goes far beyond the previous possibilities of telecommunications purchasing.
International Corporate Group
Calculations with tens of millions of individual connections, development of two specific auction designs, creation of master service agreements for three countries.
More than 50% savings
1Initial situation: 37,000 mobile phone contracts, 3 countries, 6 months
New mobile phone contracts were to be concluded for the company in Germany and two other European countries.
This involved transferring the master service agreements concluded by two independent Group companies with different providers in each country into exactly one master agreement per country. In total, this affected about 37,000 mobile phone contracts with an annual purchasing volume of several million euros.
Due to the remaining term of the existing contracts, a changeover to the new contracts had to be ensured in 9 months from the start of the project.
Owing to the large number of cellphone cards, several hundred locations to be considered and the correspondingly high technological complexity, the providers as well as the internal departments had to be given an implementation period of at least three months. As a result, a period of only six months was available for the conclusion of the new contracts.
Because of established specific processes, especially in the billing of the mobile phone service, comprehensive additional requirements had to be fulfilled for this.
2Analysis: Requirements gathering and contract analysis
The requirements gathering, i.e. the determination of which communication services were used to what extent, involved the gathering of tens of millions of individual connections. For each user, the usage data of the last six months was taken into account, so that a resilient representative demand profile per user could be guaranteed.
Furthermore, the individual connections had to be recorded for each user, because many individual connections are valued differently per provider. Consolidation was therefore not permissible. Another increase in complexity was that in order to achieve the necessary data quality, several databases of the providers or billing service providers had to be integrated.
In addition to the analysis of the use of mobile services, the existing master service agreements were analysed for the inclusion of the administrative service requirements as well as to determine the legal obligations in regard to termination.
Due to historically grown far-reaching individual agreements, the current master service agreements comprised several hundred pages, so that a further task was to condense the agreements to the essential commercial and legal aspects with regard to feasibility.
3Conception: Simulation, target pricing, auction design
Based on the recorded usage data and the service portfolios of the providers selected by the customer as relevant, the most cost-effective tariff-option combinations per subscriber and thus the target tariff portfolio as well as the target prices were calculated by simulation. The result was the essential commercial basis for the auction.
Feldwerk also designed the auctions taking into account the individual and complex requirements of the client, based on two auction designs developed for this purpose, the "Sequential Call Auction" and the "Multiple Parallel Call Auction".
The "Sequential Call Auction" is a single-stage auction with maximisation of the likelihood of success of the deal with the existing bidder, while at the same time being highly competitive and ensuring that the empirically lowest price is achieved.
The "Multiple Parallel Call Auction" is a three-stage auction with identical chances of success for all participating bidders while guaranteeing the achievement of the de facto lowest possible market price.
The Sequential Call Auction was conducted separately in two countries and the Multiple Parallel Call Auction was used in another country.
In the Sequential Call Auctions, the target prices were met directly, so that the auction ended after one stage as intended and the existing bidder was retained.
In the Multiple Parallel Call Auction, both bidders met the target prices of the first and second stage, so that the decision was made in the third stage, a Vickrey Auction.
Since the Vickrey Auction is a sealed bid auction, the guarantee of unambiguousness and manipulation-free conduct was a prerequisite for acceptance by the bidders. Therefore, the Vickrey Action was conducted as a Presence Auction in compliance with strictly formal protocols and documents.
Result: All requirements were met and more than 50% savings achieved.
All of the requirements were met in full. The overall savings achieved were well over 50%. A result that is all the more extraordinary against the background of the very low initial cost level that is usual for corporate groups.