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 ‘Hospital’ 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.”
Hard Work and the Reverse Auction Process, Saves a Local Hospital $51k On Scope Camera Instrument Repair
This bid has been in the making for just under a year. After many conference calls between eBridge and the Buyer, to get a complete understanding of and determine the best way to achieve what the Buyer was looking for, we finally reached the bid date 10 months after discussions began. All of the hard work and attention to detail was the perfect set-up for a great bid! 7 of the 15 sourced suppliers participated in the 47 minute reverse auction, placing 145 bids with 18 first-place turnovers. The spread between 1st and 2nd place was 0.14%. The anticipated annual savings to the Hospital is $51,212 or 30%.
A university hospital used eBridge’s reverse auction platform to purchase disposable gloves, masks, shoe covers, and other disposable protection materials. The 11 participating suppliers were competing over 9 line items. There were four 1st place turnovers, with 264 bids placed. The event lasted 43 minutes, with 34 time extensions. The hospital was pleased with the outcome, as they saved 40 % off their budget.
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.
A large hospital system engaged eBridge to help establish a three year contract for laundry and linen services. eBridge worked with their procurement team to first identify purchases over the next year that would be appropriate for the reverse auction process. Next, eBridge’s team helped the group develop a set of specifications for the bid.
“It had been several years since the hospital had opened this item up for competitive bidding so they didn’t have a set of specifications that appropriately appealed to a wide group of suppliers,” said Rebecca Flaherty, Senior Procurement Manager at eBridge. “My team collected the requirements as directed by the hospitals’ team and then helped write specifications that were both thorough and clearly defined, positioning the bid to be highly competitive and fair.”
A total of eight suppliers were approved by the hospital’s team and included in the bid opportunity. eBridge’s strategic sourcing efforts brought 6 new suppliers to the table for this event.
The suppliers placed 140 bids with first place changing hands 11 times. At the conclusion of the bid, the hospital had saved 28% versus budget, with the three lowest bidders within a close margin.