First quarter statistics have always been an interesting indication of the year to come and what to expect.
eAuction statistics report for the first quarter of 2020
Historically, Q1 has always generated higher savings compared to Q4 of the previous year. And 2020 is no different. The average savings compared to current price have jumped from 7.76% in Q4 2019 to an impressive 14.17% in Q1 2020. This is the highest level of savings percentage observed in Q1 for many years, outperforming savings in Q1 2019 by 3.57 percentage points.
Additional Read: Take a look at our Most Recent eAuction Report
Q1 has typically outperformed later quarters, so we are expecting to see a relative reduction in the savings over the coming quarters. Reflecting upon the stats from previous years, this drop is likely to be between 1-3%. However, this still sets 2020 on course to outperform the 9.01% savings registered in 2019. We have yet to see the full extent of consequences from the current COVID-19 crisis and are keen to report on how this unique and devastating supply chain impacting event will influence the forward trajectory of savings achieved.
Highlights from Q1 include:
- Services was the most eAuctioned category in Q1 with an average saving of 13.25% paired with a high level of event consistency throughout the period. It has been many years since we last saw Services being the most eAuctioned category in a quarter.
- The activity level in Iron and Metals is comparable to Q1 2019 however, this year, registering a significant spike in the savings of almost 15 percentage points.
- Many categories outside of the top 10 list showed significant and at times, ‘blockbuster’ levels of savings from 20-30% on an average with MRO and Marketing Materials etc. leading the way!
We hope that this information is both useful to you and acts as a constant source of inspiration as you build your sourcing pipelines. If you'd like to see more statistics click here. For more information, be sure to reach out to your Scanmarket account manager or contact us.