May 22, 2013 • 2:54pm in Chemicals, Services, Water Treatment, Water Treatment Chemical
A large water and sewer agency in South Carolina recently ran its second annual chemical bid with eBridge and once again lowered its chemical costs. These results were consistent with other water agencies that have run multiple events with eBridge.
There are several reasons why eBridge can deliver savings in successive years on the same commodity. First, we are constantly sourcing to bring additional qualified suppliers to our bids. Second, the suppliers are coming into the bids prepared to lower their prices and compete for the business. Third, we are constantly working to become better at the process of running an effective reverse auction and the results prove that we handle the details exceptionally well.
A well run reverse auction creates real time free market competition that delivers the best market price for a buyer. There are many steps to running a great reverse auction and eBridge has the expertise and experience to deliver value for our clients.
May 9, 2013 • 3:16pm in Chemicals, City Government, Construction, Event Summaries
An Indiana county has partnered with eBridge to run reverse auctions for their annual road salt purchases for seven consecutive years. eBridge has continued to find market value for this IN County year-after-year and this year was no different. At this point, you could call us both experts when it comes to road salt. This year, 6 of the suppliers sourced by eBridge met the Buyer’s minimum requirements and were approved to participate in the bid. During the 45 minute auction, the 6 competing suppliers placed 187 lowering bids resulting in first place changing hands 68 times. If awarded to the low bidder, the buyer will save $5.77 per ton over last year’s price. We are happy to again report that a great partnership and the reverse auction continue to produce savings.
March 19, 2013 • 4:07pm in Department of Corrections, eBridge, Event Summaries, Security, State Government, Supplies
The Department of Juvenile Justice for a Southern State recently ran their first reverse auction. The online event was run for clothing items and pricing came in 45% below budget. eBridge helped source additional suppliers to participate and this created true competition. Eight suppliers were approved by the purchasing director to participate. In the end, the incumbent supplier was the low bidder.
The purchasing director said, “I was skeptical about the effectiveness of reverse auctions, but we saw that they were effective for other state agencies and decided to give it a shot. Rebecca at eBridge did a fantastic job in helping us with the specifications, sourcing suppliers and training everyone on how to use the system. In the end, we saved 45% compared to the pricing we received the last time we ran a traditional sealed bid.”
September 7, 2012 • 11:12am in eBridge, Event Summaries, Janitorial Supplies, State Government
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.
August 13, 2012 • 11:06am in Event Summaries, Healthcare, Hospital, Services
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.
July 18, 2012 • 2:40pm in eBridge, Event Summaries, Healthcare, Higher Education, Hospital, Services, University
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.”
June 1, 2012 • 5:07pm in Change Management, eBridge, Event Summaries, Fuel, State Government
A State Department of Corrections in the Southeastern US partnered with eBridge to run an annual propane bid for 8 of their facilities. Fuel bids shouldn’t be run on a fixed price quote because of large weekly fluctuations in petroleum costs. The bid required the 5 suppliers to compete by lowering their mark-up to the weekly oil price index for liquid petroleum. The 48 minute reverse auction allowed 5 suppliers to aggressively compete, resulting in 76 first-place turnovers. There were twelve separate lots and the spread between 1st & 2nd place did not exceed .18% on any of the lots. Despite increases in delivery costs since the last time the bid was run, the agency will realize a 4% decrease in propane costs relative to the old contract.
June 1, 2012 • 5:05pm in Chemicals, City Government, eBridge, Event Summaries
Having consecutively run their last 5 chemical bids through eBridge’s reverse auction and achieving an estimated overall savings of $175,376, running the 6th consecutive chemical bid was a no-brainer for this KY Agency. This bid had 3 approved suppliers competing for the agency’s annual contract for Ferric Sulfate purchases. During the 36 minute bid, 56 bids were placed with 20 first-place turnovers. The expected savings is $36,000 or 15%. This shows with even just a few competitive suppliers, the reverse auction can still provide significant savings.
May 8, 2012 • 5:44pm in Chemicals, eBridge, Event Summaries, State Government, Water Treatment Chemical
One of the largest water & sewer agencies in South Carolina teamed with eBridge to run their annual chemical bid. There were 19 chemicals included in the bid and twenty participating suppliers. Overall, the budget for chemicals annually is over $3 million and the agency realized savings on their largest spend categories. For instance, Aluminum Sulfate accounts for more than half the budget and the agency shaved $70,000 off their annual cost for that chemical. Fuel prices have been driving up chemical prices because delivery costs are increasing. This agency was able to take positive steps to control their costs.
April 27, 2012 • 3:21pm in Chemicals, City Government, eBridge, Event Summaries, Water Treatment Chemical
Since 2009, this local KY Agency has run 5 chemical bids through eBridge’s reverse auction process. Their latest running this week resulted in an estimated savings of $310,800 or 24%. 16 suppliers placed 592 bids (between 8 chemicals) resulting in 179 first-place turnovers. The lowest spread between 1st and 2nd place was 0.06%. Chemicals are just one of many purchases that continue to produce significant savings through the reverse auction process. With such a large supplier base, regardless of the chemical, eBridge always seems to get a great response for participation.