To Maximize the Monetization of Export Scrip
An auditor couldn't confirm export scrips were being sold at competitive value. A forward auction, configured around a discount-to-100% bid logic, closed that gap.
By Anupam Aggrwal · 30 June 2024
Problem Statement
We were approached by one of the largest staples exporters who were monetizing large-value export scrips earned from their exports (70% of their revenues). Since they do not import anything (or very little), they had to monetize it in the open market at a discount. The auditor wasn't sure whether it was being monetized at a competitive value (and not leaving money on the table).
Desire
To monetize it through a fair process against competitive bids.
Solution
In consultation with the customer, we devised an auction for the customer whereby the scrips were auctioned through a forward auction methodology and the winner was selected based on the highest bid. The challenge was in configuring the fields to suit the use case wherein the unit bid is a discount to 100%, which we achieved after a few iterations.
The solution had to be very simple and intuitive for the bidder to effortlessly participate and focus on the real-time competition. We created the fields in such a way that the logic was simplified to just putting in the bid as a percentage.
Outcome
The customer has been using it for over a year now with significant improvement in the realization on the monetization of the scrips to the importers.
Future Plan
Encouraged by our ability to solve problems through a digital platform, the customer is now using it for many use cases in their business over multiple years and is one of our biggest references on problem-solving through our platform.