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.
April 25, 2013 • 3:41pm in City Government, Construction, School District
A large school district in Chicago’s northwest suburbs recently saved 47% off budget on a service contract for Parking Lot Paving and Maintenance. The three-year contract will see a reduction in costs of $115,000 and the winning vendor was an incumbent.
eBridge’s Specification Development Team suggested a new approach to capturing the pricing. The auction broke it down into measurable, responsible pieces by square and liner footage that helped minimizing inefficiencies. This recommendation helped them to standardize their pricing for future projects, provided exact measurements of their property (provided by vendors), and solidified their budget for the next 3 years.
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.
July 18, 2012 • 12:13pm in County Government, eBridge, Event Summaries, School District
A school in South Carolina recently ran a very competitive bid for its annual waste hauling contract through eBridge. Four vendors were approved to bid by the school. All of the vendors lowered their bids during the live online event. In the end, the incumbent was awarded the contract and the school realized a cost decrease of 6%.
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.
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.
April 27, 2012 • 2:59pm in Change Management, eBridge, Event Summaries, Furniture, Fixtures and Equipment, Higher Education, University
After learning of the great success several other local universities were having with reverse auction bidding, this CA University decided it was their turn! They partnered with eBridge to run a reverse auction for their purchase of dorm room furniture. For the live competitive auction, suppliers were required to bid a lump sum total for the entire scope of service (included: purchase of furniture, delivery and handling, installation as well as removal and relocation of existing furniture). Immediately following the live auction, suppliers had 3 hours to electronically submit their unit pricing, giving a complete breakdown of the final lump sum bid placed during the live auction. During the 25 minute auction, 4 suppliers placed 41 bids resulting in 5 first-place turnovers. The spread between 1st and 2nd place was 0.32% with an estimated savings of $19,800 or 12.5%.
April 27, 2012 • 2:55pm in City Government, County Government, eBridge, Event Summaries, State Government
eBridge has run many successful reverse auctions for several government agencies in Indiana and Kentucky. Achieving significant savings on their past 3 road salt bids, last week a KY Agency again partnered with eBridge for their 4th consecutive road salt reverse auction. During this 15 minute auction, 5 suppliers placed 84 bids resulting in 4 first-place turnovers. The spread between 1st and 2nd place was 0.13%. Also, this week an IN Government Agency partnered with eBridge on their 5th consecutive road salt reverse auction. 4 suppliers placed 65 bids resulting in 8 first-place turnovers during this 15 minute auction. The spread between 1st and 2nd place was 0.1%. Based on the spreads between 1st and 2nd place, both agencies can be assured they have achieved true market value, as well as, proving that road salt bids are perfect candidates for the reverse auction.