eBridge ran another elevator maintenance bid yesterday. This time, a client in North Carolina with 142 elevator units was looking to consolidate to one service provider and significantly upgrade their level of service. The prospective suppliers submitted detailed proposals and toured the site prior to the online reverse auction. Four of the prospective suppliers were approved, by the buyer, to participate in the bidding event. All of the suppliers lowered their bids during the event with the two incumbent suppliers really battled for the business. After an hour of bidding, 1st and 2nd place were only separated by $500 or .08% of the total value of the contract. This bid was a fantastic example of the competition and value that a well-run reverse auction can generate for service contract bids. As a private entity, the buyer is not obligated to award to the low bidder. In this instance, the buyer knows they are getting a great price from either of the top two bidders and can base their decision completely on the quality of service provided.
Archive for the ‘Services’ Category
A large private university and affiliated hospital recently ran a reverse auction bid for their records management service. The bid was a five year contract and involved three pre-screened and approved vendors. After an hour and thirteen minutes of bidding, that showed 1st place turn over 27 times and a less than 1% spread between first and second place, the institutions had pricing that was 32% below their current rate. Over five years, that totals $914,880 in savings by utilizing reverse auction technology.
The Director of Strategic Sourcing for the hospital said, “eBridge is truly helping us to change the way we source for products and services. Whereas a sealed bid process can result in cost reductions, eBridge is able to help us to create true competitive marketplace where qualified suppliers can submit bids real-time. We continue to see tremendous value in this approach to sourcing.”
Southern California Casino Cleans 42% off Their Budget on Their Linen & Terry Laundry Services Bid
Southern California Casino ran a bid for Linen & Terry Laundry Services, with 4 participating suppliers. In the 1 hour and 6 minute event, 234 bids were placed with 59 first place turnovers. The spread between 1st and 2nd place was 1.96%, reaching true market value. This tribal gaming and resort saved 42% off their budgeted spend for a three year contract. This was their 2nd event with eBridge after procurement director’s high recommendation of his experience in the first bid. His enthusiastic recommendation to Gaming Executives reinforced the successful partnership that was developing.
The General Manager commented that we had exceeded his expectation by over 3 times the final savings that he had hoped for. Throughout the bid, the GM just couldn’t believe the competitive environment of the suppliers who wanted to earn their business. The Executive Housekeeper who worked directly with eBridge throughout this event also commented that this tool makes so much sense for all their purchasing needs. He said “The results that we received from using eBridge’s reverse auction process far exceeded our expectations. I believe this to be a very powerful tool in finding the true market value of products/services. With this process, I believe a buyer can really find their maximum savings potential.” – Executive Housekeeper & Environmental Services Manager
In the post follow up with the Executives, they both rated our process, expertise, service and results a 5 star rating or 10 out of 10 scorecard!! They are considering their next purchases for e-Procurement including linens, robes, towel and capital purchases. We look forward to serving the entire team and continuing to be an extension of their procurement strategies!!
Local service contracts are often overlooked as a savings opportunity in healthcare. However, a hospital system in North Carolina was able to cut its water delivery costs by engaging with eBridge to run a reverse auction bid for the contract. Previously, the hospitals had four different vendors and variations in prices. eBridge worked with the procurement office to develop specifications for a bid, identify additional potential suppliers, trained the suppliers on the eBridge website, and hosted the online bid. Seven suppliers were approved by the hospital and the bid was broken into multiple lots. In the end, a local incumbent supplier earned all of the business, and the hospital system consolidated its contracts and lowered its costs.
Agua Caliente Band of Cahuilla Indians, teamed with eBridge to acquire their culinary uniform and linen services. Six suppliers participated in the event, which lasted for 48 minutes. There were 83 bids placed with 15 first place turnovers and market value was achieved when the auction ended with a 1st and 2nd place spread of only 1.35%. Agua Caliente saved 13.52% on their budgeted value.
During the auction, Agua Caliente Executives were assured of their choice to partner with eBridge when the 3rd place supplier reduced its bid by 50%. That suppliers lowering bid put them within a few dollars of the 1st and 2nd place suppliers. This created “credibility”, as stated by an Agua Caliente Executive, of Reverse Auctions as a strategic procurement tool to provide True Market Value of the products and services they were purchasing. Executives also stated they were confident they were getting the best price for the product and services rendered from process.