The Department of Corrections for a Southern State ran their 12th reverse auction bid with eBridge today. The event was a live online bid for bar soap and it was one of the most competitive bids ever run by eBridge. Four suppliers were pre-approved to participate in the bid. A good reverse auction is generally defined as one that has 10 or more first-place turnovers and a spread between 1st & 2nd place of less than 2%. The original clock started at 15 minutes and because the bidding doesn’t stop until no lowering bids are placed in the final three minutes, the event went for 115 minutes. In the end, there were an amazing 321 first place turnovers and a spread of just .10% between first and second place. This bid was last run in 2007 as a traditional sealed bid. Thanks to a successful reverse auction, the cost of soap actually decreased by 9.5% for the state and its taxpayers.
Archive for the ‘Janitorial Supplies’ Category
Corrections Department Cleans Up On Soap
eBridge Helps CA University Flush-Out All Doubt Towards Reverse Auctions by Achieving a 15% Savings on Their Annual Janitorial Paper & Feminine Hygiene Products
By inviting 4 other campus locations to participate in their 2nd reverse auction with eBridge, this University more than doubled their bid volume making it a much more attractive bid for participating suppliers. Several of the campus locations felt they were already getting the best possible price but still wanted to participate. Six suppliers were excited to compete for the University’s business placing 309 bids with 39 first place turnovers during the 74 minute event. The high-low spread between 1st and 2nd place was 0.83% proving true market value. The auction produced a total savings of $65,500 or 15% under budget, again proving this technology and process works. They are reviewing their largest purchases and identifying which will be the next good fit.
An Indiana Banking Agency Saves 11% on Their Janitorial Services Bid
eBridge partnered with an Indiana banking agency to run a janitorial services bid for several of their bank locations in Southern Indiana and Kentucky. Prior to the bid, they were using multiple suppliers. Their goal was to find one supplier that could provide services for all locations and also save a little money. We had an overwhelming number of suppliers (17) respond to participate in this bid. After reviewing all the responses, the buyer only approved 6 suppliers to participate in the live bidding event. The bid lasted 1 hour and 2 minutes. During this time, 440 bids were placed with first place turning over 14 times. Based on the low-bid, this Indiana banking agency saved 11.4% on their 3rd event with eBridge. They were pleased with the results and eBridge will partner with them again on future opportunities.
eBridge Runs Janitorial Contract for a California University
In their first eAuction with eBridge, a California State University purchased restroom paper towels, toilet tissue, and dispensers. The 2 suppliers competing for the 2 year contract had given presentations to the university prior to the auction. There were a total of 17 bids, and 1st place had 2 turnovers.
Poultry supplier uses reverse auction to purchase packaging materials
It’s no surprise that a company that prides itself in being an “innovator in the production and marketing of premium, value-added chicken products”, partnered with eBridge to purchase their stretch film for meat packaging.
The reverse auction is becoming the industry standard for purchasing professionals and this poultry company knew the reverse auction process fit with their company values to be “at the forefront of many of the industry’s top production and packaging solutions” by partnering with eBridge on this purchase.
Not only did eBridge help the organization save nearly 13% on the purchase of stretch film for their meat packaging, but eBridge brought more suppliers to the bid, ensuring this company achieved true market value for their purchase.
In a traditional paper bid process, the company would have only received 9 bids, which was the total number of suppliers. But with the reverse auction, the company received 72 bids from the nine suppliers.
Because if the efficiency and financial success of this bid, the company is poised to have a long relationship with the reverse auction process, allowing them to operate more efficiently and profitably, still producing the same quality product as they always have.
Reverse Auction saves City 29% on Waste Management Materials
A prominent south Florida city partnered with eBridge to purchase steel containers and roll off boxes. These items are used in waste management.
Four suppliers participated in the event, placing a total of 526 bids on the 26 different line items. The clock extended 110 times, allowing suppliers to continue to compete for business. First place changed hands 114 times, making the event outcome uncertain until the very last second.
Final pricing indicated a savings of 29%. It should be noted that the savings is based on a 2008 budget number for this bid- two years ago.
BidBridge Partners with Western US City to Contract Waste Management Services
In this city’s second event with BidBridge, five suppliers competed for a toilet rental and cleaning services contract for Parks and Recreation areas, theaters and arenas. The event included 16 line items included portable toilets, ADA compliant portable toilets, a free standing hand washing unit and a trash box. In addition to the item, suppliers competed on pricing for varying frequency of toilet cleaning, including special event rates, emergency cleaning rates and standard weekly cleaning rates.
The bid lasted one hour, five minutes, with 16 time extensions. The most competitive line item was for the ADA compliant handicapped portable toilet with four weekly service cleanings. This line item yielded 26 total bids, 9 first place turn-overs and a 0.9% between first and second place.
At the conclusion of the event, the senior purchasing manager stated, “We could not have achieved these results without {BidBridge}. A very good result.”
City of High Point, NC Purchases 36,000 Recycling Containers With BidBridge's E-Procurement Platform
Records 1.62 Percent Margin between First and Second Place Suppliers, Indicating Market Value Was Achieved; Saves $123,000 against Budget
HIGH POINT, N.C., Sept. 22 /PRNewswire/ — Increased focus on the environment from national and local perspectives prompted the City of High Point, NC to replace its smaller recycling bins with larger 95-gallon containers. The recycling receptacles would then be distributed to local private residences for weekly recycling collections.
While necessary, the 36,000 bins required to satisfy the city’s needs would be costly to procure. The city set aside $1.5 million for the project and sought the aid of an experienced procurement company, eventually choosing Louisville-based BidBridge, an e-procurement services provider for the public and private sectors.
BidBridge facilitates a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, providing an alternative to the public sector’s traditional process of a one price per supplier response. By utilizing the BidBridge platform, the City of High Point was able to save more than $123,000 against budget.
By the end of the 52-minute bid (taking place June 23), five competing suppliers had logged 45 bids, resulting in 31 time extensions and a 1.62 percent margin between first and second place – a key indicator that the city purchased the recycling receptacles at market value.
“With the final award amount totaling $1,337,000, there is no doubt that the reverse auction had a hand in saving valuable taxpayer money for the City of High Point,” remarked Cindy Sisloff, director of marketing and business development for BidBridge. “With a national focus on government spending, BidBridge offers a way for cities like High Point to be more strategic in their purchasing.”
Reverse auction saves city of Daphne, AL $61K
DAPHNE, Ala. — The city of Daphne recently saved around $61,000 by modifying its traditional project bidding process to an electronic bidding platform, using BidBridge, which allows for reverse auctions and claims true-market values.
The city budgeted $235,000 for the purchase of new trash bins, according to the city’s senior accountant, Suzanne Henson; the awarded bid came in at $174,000.
The reverse auction process allows suppliers to place multiple competitive bids, a change from the traditional “one price per vendor” scenario.
“Using the reverse auction, we were able to get more participation from bidders,” Henson said.
“The cornerstone of our business is competition,” BidBridge operations manager Guy Ramsey said.
Using the reverse auction, sellers compete against each other in a virtual bidding landscape; the process is timed and all bids are sealed.
Ramsey said BidBridge’s process allows for transparency during the bidding process, an attractive feature for a city in the process of formulating next year’s budget.
Henson expects the city to continue using the reverse auction for future project bids.
She added that the city council has the authority to reject a bid if it feels the offer’s not in the city’s best interests.
Founded in 2005, the Louisville, Ky.-based company provides an online procurement system used to secure public and private bids.
City Saves 11% on Trash Hauling Equipment through Reverse Auction
In this city’s second event with BidBridge, 3 suppliers competed on a bid for 1,000 96-gallon and 100 64-gallon garbage carts. The city needed the items to upgrade their current supply and add additional to compensate for the increased number of residents.
During the 34 minute event, a total of 10 bids were placed, resulting in 4 time extensions. At the conclusion of the event, the City had saved over 11% versus their initial budgeted amount for both the 64 gallon and the 96 gallon garbage carts.