IL City’s Water Tastes Better With Great Savings 4 Years in a Row

Even though it is their 4th year using eBridge for their Water Treatment Chemicals, the savings are still pouring in for a city in Illinois.  This year, the reverse auction process saved them approximately $184,800 on their four chemicals.  Nine suppliers placed 136 bids which allowed for true market value to be found with a spread between 1st and 2nd place of 0.76%.

Reverse Auction For Water Agency Delivers Value

A water agency for a southern city ran its second reverse auction with eBridge and it produced some dramatic savings.  The bid was for sodium hypochlorite and phosphoric acid.  There were at least four bidders in each category and the online bidding was very active for forty minutes as vendors competed for the business.

When the event concluded, the agency calculated that they lowered their annual expenditure on sodium hypochlorite by $80,000 and phosphoric acid by $112,000, representing a savings of 35%.  The reverse auction technology is important.  However, at eBridge, we believe that the proprietary process that we’ve developed is what differentiates our service and enables the reverse auction to deliver maximum value.

The purchasing manager for the agency said, “eBridge brought a level of expertise to the table that minimizes public expenditures to the greatest extent possible. eBridge expands the database of qualified vendors which provides greater opportunities for offers. Prior to the bid event eBridge provides individual training to each vendor ensuring there is a complete understanding of what is required in order to submit responsible and responsive offers. eBridge also handles all the administrative duties normally assigned to the purchasing agent associated with the dissemination of bid documentation ensuring that consistency, transparency and integrity is achieved throughout the process. I would highly recommend using e-Bridge if the opportunity arose to enhance your organization’s ROI wherever possible.”

Reverse Auction Delivers Chemical Savings Again

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.

Happy 7th Annual Road Salt Reverse Auction

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 Indiana 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.n

Four water agencies ran their first reverse auction chemical bids through eBridge in November

We have found that chemical bids are a great fit for reverse auctions because they create a highly competitive environment for commodity purchases. Budgets are tight and if your agency is looking for strategies to control chemical costs, it could make sense to consider a reverse auction bidding strategy. Below is a summary of the most actively bid chemicals:

South Carolina City (Population 120,000)
Chlorine 3 Suppliers 36% decrease from 2012 pricing
Lime 4 Suppliers 21% decrease from 2012 pricing
Phosphoric Acid 6 Suppliers 43% decrease from 2012 pricing
Sodium Hydroxide 6 Suppliers 14% decrease from 2012 pricing
California City (Population 209,000)
Granular Activated Carbon 3 suppliers 24% decrease from 2012 pricing
Kentucky City (Population 740, 000)
Sodium Hydroxide 4 Suppliers 11% decrease from 2012 pricing
Pennsylvania City (Population 300,000)
Calcium Hypochlorite 3 suppliers 14% decrease from 2012 pricing
Caustic Soda (25%) 4 Suppliers 42% decrease from 2012 pricing
Copper Sulfate 4 Suppliers 13% decrease from 2012 pricing

Reverse Auction Saves KY Agency 15% on Their Chemical Purchases

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.

eBridge Runs Large Water Treatment Chemical Bid in South Carolina

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.

eBridge’s Reverse Auction Produces Savings on Kentucky and Indiana Annual Road Salt Purchases

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 Indiana 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 gone to award.

Albany Saves Again Through eBridge’s Reverse Auction

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%.

Reverse Auction for Water Treatment Chemicals in North Carolina

eBridge ran a very successful auction for a local water & sewer agency in North Carolina.  It was their first experience with reverse auction and they started with 5 chemicals:  Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic).  The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees.  All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level.  In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease).  The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year.  eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.

Reverse Auction for Water Treatment Chemicals in North Carolina

eBridge ran a very successful auction for a local water & sewer agency in North Carolina.  It was their first experience with reverse auction and they started with 5 chemicals:  Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic).  The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees.  All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level.  In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease).  The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year.  eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.

Third Reverse Auction Bid Gets Amazing Results

A State Education Lottery has successfully been using a reverse auction strategy to purchase its promotional items like pens, cups, and t-shirts with their logo.  The first two auctions came in below budget, but the third bid delivered even more amazing results.  Seven bidders were approved to compete after submitting samples to the agency.  The catalog price for the items was over $150,000 and the State budgeted $129,000 for the purchase.  After an hour of suppliers underbidding each other, the low bid came in at $50,000!  Second place was $51,900 and all seven of the bidders were at least 25% below the budgeted amount.

The City of Versailles, KY Saves 9.3% on 2012 One Year Chemical Contract

The City of Versailles, KY ran their 2nd chemical bid through eBridge’s reverse auction system. The City of Versailles, KY needed 12 chemicals, for a 1 year contract. The hour and a half event was extremely competitive, with 16 participating suppliers and 461 bids placed. There were 95 first place turnovers, causing a high/low spread of 0.03% and reaching true market value. The City of Versailles were pleased with the results, and saved 9.3% on their budgeted value.