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.
Posts Tagged ‘online reverse auction’
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.
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.
Reverse Auction Saves Local KY Water District over $300k on Annual Purchase of Water Treatment Chemicals
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.
CA University Will Sleep Better After Saving 12.5% on Their Dorm Room Furniture Through eBridge’s Reverse Auction Process
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%.
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.
eBridge’s Reverse Auction Helps Department of Corrections Keep Price Increases Down on Their Fresh Meat Purchases
Due to rising fuel costs, the Buyer expected an increase in their quarterly purchase price. They partnered with eBridge to run the bid through the reverse auction process with a goal of keeping the increase to a minimum. The Buyer’s goal was reached and the bid was a success. eBridge sourced 28 suppliers and 8 were approved to participate. The 8 suppliers competed for an hour and 11 minutes, placing 231 bids which resulted in 151 first-place turnovers. Achieving true market value, the spread between 1st and 2nd place was 0.13%. The Buyer was very pleased with the bid results and the bid has already gone to awarded.
Although eBridge’s preference is to source 5 suppliers per bid, this bid proves that it only takes 2 aggressive suppliers competing to achieve true-market value to get great results. eBridge sourced and invited 27 suppliers to participate in this event but because several of them could only supply part of the required services, only 2 were approved for participation. However, during the 23 minute reverse auction, these 2 suppliers placed 142 bids resulting in 38 first-place turnovers. The spread between 1st and 2nd place was 0.57%. If awarded to the lowest bidder, the University will save at least $83,809 or 35% on the 5-year service Agreement.
After achieving significant savings for their chemical purchases through eBridge’s reverse auction process in 2011, this Albany, KY agency was ready to see what the reverse auction would bring in 2012. Initially a few of the chemicals had limited supplier participation but through additional sourcing efforts by eBridge, 8 suppliers placed 292 bids between the 7 chemicals. There were 118 first place turnovers during the hour and 12 minute bid. The high-low spread between 1st and 2nd place was .04% with a savings of $47,588 or 23%.
Finding ways to do more with less
By Paul Davidson, USA Today
The post recession American workplace is a leaner and more productive workforce. Today companies across the US are finding ways to do more with less and are operating as a team that shares jobs/responsibilities and enjoying higher job satisfaction.
For example, a bank branch of Anderen Bank in Orlando has a frontline team of four employees today vs ten. This team of four are not chained to their stations but are cross trained to fill in and help out as needed as tellers, customer service reps, new account salespeople. Bank deposits at Anderen have gone from $35 to $100M.
Increased workforce productivity across the country (up 3.5% in 2009) is the new normal.
It is predicted 2.4 M jobs will be added in 2011 but won’t recover the 8.3M lost. That is due to efficiencies that businesses achieved in the downturn. Many combined two to three jobs into one and have become more efficient through implementing new technology and software into their process.
Human resources CEO Harry Griendling of DoubleStar said, “The downturn forced companies to re-examine everything they were doing and come up with a new model.”
“I think there is a generation of leaders who went through a crisis and are going to manage and lead this way for the next 10 years,” said Walt Shill, managing director of Accenture.
eBridge’s fully managed reverse auction procurement team has become an innovative part of company’s new business model. Their efficient online procurement process (with no upfront costs) delivers net savings of 10% to 25% on purchases over $100k and assures their clients achieve an ‘at market’ transaction every time.