An auction design that works successfully for one industry will not necessarily be the best suited for another industry. As an established provider of auction services to the global dairy industry, when Global Dairy Trade (GDT) began the process of looking for a technology company they had the following requirements:
- A technology company that could help grow their business of matching buyers and sellers in the global dairy industry
- A partner who could help them create a full feature, configurable marketplace platform that combines enterprise grade performance
- A partner who could offer different trading models for their customers to select according to their individual preference
- A technology partner with a deep understanding of auction trading mechanisms.
As a result, they approached Perfect Channel and in collaboration built GDT Marketplace on Perfect Channel’s flagship auction and trading platform, Perfect Exchange – a full feature, configurable marketplace platform which combines enterprise grade performance and a host of flexible trading and resolution mechanisms.
In June 2017 (and a year after launching in June 2016) they had attracted registered sellers from Europe, USA, Asia and Oceania on GDT Marketplace. They also reported 165 new registered buyers, transacting with five major sellers with more than 1,500 listings completed across a broad product range from generic ingredients like whole milk powders and cheese to name a few.
Following on these results, GDT recently released quarterly results that show a 40% increase in buyers and doubling of sellers: GDT Marketplace now has 233 registered buyers and 10 sellers from Western Europe, USA, Oceania and Asia.
Core to every successful market design is a strong partnership between industry and the electronic trading venue. At Perfect Channel we believe that to build an efficient and fair commodities marketplace requires collaboration, and much less of the over-used term disruption. You can read more about how we worked with GDT to create GDT Marketplace in our white paper: ‘The Auction Mechanisms Behind Delivering a Best in Class Dairy Trading Platform’
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