For their 3rd event a large resort/hotel chain used reverse auction for the purchase of Kitchen Equipment. There were four participating suppliers competing extensively for the opportunity to win this event. There were 123 bids placed with 8 first place turnovers. At the close of the bid the spread between 1st and 2nd place was 0.10%, reflecting true market value. The hotel chain saved 15.6% off their budget, and was pleased with the results.
Archive for the ‘Hospitality’ Category
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!!
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.
Last week eBridge ran a second event for a large hotel chain to purchase furniture for their second phase of rooms. These rooms were larger, therefore different styles of furniture were outlined in the specifications. The same suppliers were approved to bid on the project. Each had set up a demo room in the hotel so the purchasing team could visualize the set up and evaluate the quality of the goods prior to the companies responding to the bid specifications.
The live event ran just over an hour, with the three suppliers placing 43 bids total. First place changed hands 26 times and first and second place bidders were separated by a mere 1.5%, indicating that true market value was achieved. At the conclusion of the reverse auction event, the final low bid was 16.95% below budget.
The hotel organization is slated to run several more bids this month including other building and renovation materials.
A large national hotel chain partnered with eBridge to purchase items for a room renovation project. The first purchase was for furniture (casegoods) in king, queen and double guest rooms.
First, eBridge’s worked with the hotel’s purchasing team to modify the specifications to complement the reverse auction process. Next, eBridge received a list of preferred suppliers from the hotel group. To increase competition the bid, eBridge’s sourcing team recruited additional qualified participants.
Once the suppliers were approved by the hotel group, eBridge conducted one-on-one tutorials for each supplier. In every event with eBridge, suppliers have the opportunity to ask questions throughout the process and receive a personal tutorial to make sure they are comfortable with the system and ready to compete.
During the live event, the three suppliers placed a total of 63 bids on the three line items. First place changed hands 12 times, and at the conclusion of the event, first and second place suppliers were separated by a mere 0.026%, indicating true market value was achieved. The final low bid was 17% below budget!