An Indiana Corporation partnered with eBridge to obtain security guard services. eBridge sourced dozens of vendors to assist the buyer who approved 12 who fit their specifications. These 12 vendors placed a total of 167 bids in just over a half an hour, with 67 time extensions and 16 first place turnovers. True Market Value was obtained with a spread between 1st and 2nd of 0.34% and a phenomenal 33% savings on a three-year contract.
Pulaski Technical College in Arkansas recently used eBridge to manage an RFP for Janitorial Services. The eBridge sourcing team brought 10 suppliers to compete for their business. The eAuction lasted 52 minutes and 186 bids were placed, including 82 time extensions. The final spread between first and second place suppliers was only 0.65%, showing that the school achieved true market value. In the end, the school saved over $300,000 vs. budget, a 17% savings on the previous contract. The Director of Purchasing, Tim Walbert, had this to say about the process: “Thanks again for providing a seamless, user-friendly process, and for saving our institution several hundred thousand dollars!”
eBridge partnered with a University Hospital to renew their pest control contract. The auction had 9 participating suppliers, including their incumbent, who were very competitive. During the auction there were over 700 bids, 318 time extensions, 19 first place bid turnovers, and the final spread between the first and second place bidders was only 0.0039%. eBridge helped the Hospital save over $230,000 and beat their budget by 46%.
A North Carolina university hospital used eBridge’s reverse auction platform to purchase a 3 year landscaping contract. The auction had 2 participating suppliers competing for the contract. The auction lasted 16 minutes and had a total of 13 bids placed. Thanks to the reverse auction event, the hospital was able save a total of $360,000 on their budget for a total savings of 25%.
This Corrections Institute was very pleased with the results of a competitive Janitorial Services bid that had 3 suppliers scrubbing out 45 first place turnovers and a final spread of 1.18% between 1stand 2nd place. After being satisfied with a display of true market value, the Institute was even happier when their total savings added up to $788,500, and a yearly savings of 36%!
A southern state ran a printing contract for the third consecutive year as a reverse auction bid through eBridge. There were four pre-approved bidders and because two of the bidders were willing to compete aggressively for the business, it was a very exciting auction. The low bid was reduced 37 times over the course of an hour and the price dropped about 25% from the opening bid. In the end, the taxpayers will be paying 3% less than they paid the previous year and 36% less than they paid for the same contract when it last ran as a traditional bid in 2008.
In their 3rd auction with eBridge, a School District in Texas ran a three year Trash and Recycling Bid. Four suppliers were approved to participate in the bid and placed a total of 425 bids. This resulted in a dramatic 11.4% savings in the overall contract. “Everyone was very impressed with the whole operation!” said a Senior Buyer. The School District was extremely pleased with both the results as well as their overall savings.
A school district serving 24,000 students in South Carolina recently ran their school food request for proposal (RFP) through eBridge and achieved estimated annual savings of 10% or $500,000. The incumbent food distributor was awarded the contract. This was an extremely complex RFP because there was far more involved with buying food for children than just lowering the cost. The school district took time to identify acceptable brands for every product category in the RFP specifications. eBridge worked closely with the district to build an RFP that took quality standards into account, while building a bidding format that encouraged competition among the vendors. A reverse auction was conducted and the vendors lowered their bids a total of 34 times to compete for the district’s $5,000,000 annual contract.
A corrections management company recently partnered with eBridge to run their first reverse auction. This company approached eBridge to assist in obtaining competitive pricing on drug screening for a large number of correctional facilities throughout the US. The tests needed to meet the requirements of each facility for drug screening of employees and inmates (instant and lab). Due to different laws from state to state regarding drug screening of inmates, it was a little challenging deciding all the different tests and testing methods that would be bid through the reverse auction. Welcoming the challenge, eBridge assisted in each step of the bid process starting with spec research and development to monitoring the live auction.
7 of the 50 originally sourced suppliers met buyer requirements and were approved to participate in the live bid. When the auction ended, 947 lowering bids had been placed resulting in 29 time extensions! First place changed hands 124 times and the spread between 1st &2nd place suppliers was 0.08%. The end result was a happy buyer and a low bid that will provide a 17% savings against current pricing.
A 12,000 student technical college in Arkansas ran its first reverse auction with eBridge this week. The reverse auction was part of a comprehensive RFP that will base the contract award on multiple quality factors, so it’s not just about getting the low price. eBridge worked with the college to develop specifications and source vendors to participate. In the end, a dozen vendors were approved by the college to participate in the online bidding, including four minority-owned businesses certified through the Arkansas Economic Development Commission. Four vendors came in with pricing below the current rates, and the two lowest priced vendors submitted pricing that would save the college 30% annually on their cleaning fees.
The Director of Procurement for the college said, “We were very pleased with the savings produced by the eBridge reverse auction. I was even more impressed with the value added by the operations team and the veracity of the auction process. They really helped put together a high quality RFP and brought reputable vendors to the table. We’re looking at savings in excess of $100k annually because of this one bid and we can’t wait to use this process again.”
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.”
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%.
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.
The City of Frankfort, KY partnered with eBridge to procure their odor control services. The two participating suppliers placed 87 bids. The 52 minute event had 36 time extensions, and 11 first place turnovers. On their 4th event with eBridge, the City of Frankfort, KY saved 15% off their budgeted value, with a true market value of 0.27%. They were pleased with the results of the 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!!