After partnering with eBridge for the 8th time, a Florida City finds even more savings using reverse auctions. Having had other successful projects (fertilizer & cement), the city once again turned to eBridge to find a supplier for its flooring project. In a quick auction of only 31 minutes the city was able to save 7% on the flooring project. The auction had 29 bids from 5 participating suppliers.
A city in Oregon partnered with eBridge to purchase benches and bleachers at fair market value. eBridge worked with the city to gather 7 participating suppliers for the reverse auction event. After 364 separate bids, 43 extensions, and 35 first place turnovers, the city was able to save $26,000. The final spread of only 0.0013% showed they had achieved their goal.
A Michigan Township came to eBridge to procure a contract to paint its Water Storage Tank. After identifying potential sources, eBridge hosted a reverse auction for the participating 3 suppliers. After the 373 bids were placed, the Township had saved over 13% on budget equating to almost $17,000. The auction had 88 first place turnovers, and the final spread was only 0.0074%.
An Illinois school district saved $114,000 on a paving maintenance contract in a reverse auction with eBridge. Thanks to the reverse auction event, the school district saved 48% of its budget. The 8 participating suppliers offered up 843 bids in only 31 minutes, including 68 first place turnovers and 11 extensions. The final first-second place spread was only 0.0061% confirming that the auction helped them achieve true market value.
The Federal Bureau of Prisons saved $484,000 on a roofing project using eBridge’s reverse auction services. The 15% savings on budget came from a competitive auction among 4 participating suppliers. There were a total of 129 bids with 101 extensions before the final close. In the end the 16 first place turnovers lead to a spread of only 0.0041% between first and second place, showing that the Bureau achieved true market value.
A Kentucky Care Center partnered with eBridge to purchase new windows using the reverse auction process. The auction had 13 participating suppliers and last for a toal of 55 minutes. During the auction there were 65 bids placed leading to 9 first place turnovers, 63 bidding time extensions, and a spread between first and second place of only 0.0028%. In the end the Care Center ended up saving over $24,000 and beat their budget by 27%.
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 University Facilities Department identified a specific lighting fixture for use in its garage structure. The bid required a specific luminaire from a specific manufacturer, which can be challenging when sourcing for reverse auction. However, since there are multiple suppliers of this particular manufacturer’s brand, eBridge was able to source and invite 55 suppliers to participate. Of the 6 suppliers that did respond to the bid, 5 participated in the live event. During the 35 minute event, 60 bids were placed resulting in 24 first-place turnovers. The final spread between 1st and 2nd place was 0.13% ($1.00 price difference per unit). Based on an average estimated retail price for this particular luminaire, this University will save $40,000 on their purchase.
A Southern Indiana Company partnered with eBridge for the 3rd time, to procure their Flat IDC Wire Cables. There were 3 participating suppliers in this event, which lasted for 28 minutes. Forty-two bids were placed, with a spread of 7.53% between 1st and 2nd place. The Southern Indiana Company saved 15.6% on their budgeted value, and was pleased with the process.
A California State University, partnered with eBridge to procure their BetaLED Parking and Area Lighting. The event lasted for 41 minutes, with 8 participating suppliers. There were 223 bids placed with 8 first place turnovers, allowing for a competitive bid. The spread between 1st and 2nd place was 3.72%. The university saved 32% on their first budget value, with their first reverse auction with eBridge.
A private New Albany, IN company recently utilized the reverse auction process to acquire 177 workstations for assembly. Through eBridge’s assistance they were able to develop their specifications to better qualify their suppliers. Through this qualification process, 3 suppliers participated, placing 116 bids. The event lasted a little over an hour, with 1st place exchanging hands 17 times. The company is pleased with the results, and saved 10.43% on their budgeted price through their first auction with eBridge.
Last week eBridge ran a second event for a large hotel chain to purchase furniture for their second phase of rooms. These rooms were larger, therefore different styles of furniture were outlined in the specifications. The same suppliers were approved to bid on the project. Each had set up a demo room in the hotel so the purchasing team could visualize the set up and evaluate the quality of the goods prior to the companies responding to the bid specifications.
The live event ran just over an hour, with the three suppliers placing 43 bids total. First place changed hands 26 times and first and second place bidders were separated by a mere 1.5%, indicating that true market value was achieved. At the conclusion of the reverse auction event, the final low bid was 16.95% below budget.
The hotel organization is slated to run several more bids this month including other building and renovation materials.
Earlier this week eBridge ran an auction for a regional bank for the purchase of ATM machines. The bank needed to purchase 20 new machines to comply with new ADA standards.
Due to internal software integration, the company solicited two vendors of these highly specified machines. During the auction event the two suppliers place one lowering bid each, for a total of 4 bids throughout the course of the 30 minute bidding event. Although the bid was not very active by eBridge reverse auction standards, the customer was floored by the results.
Because this is a community bank, any savings and efficiencies the bank creates in procurement directly affect its ability to enrich its local community. At the conclusion of the event, the customer was very pleased. But don’t take it from us! Here’s what the chief procurement officer had to say:
“That was some really cool stuff today. I know Jim thought it could have been more exciting but believe me, we were thrilled. I can’t imagine how an “exciting” one would be…I’m touting this as a $400,000 savings. Covers my salary for several years. Thanks again!”
In the county’s first event with BidBridge, six suppliers competed for the installation of an early warning system for the County.
Suppliers submitted pricing for 5 elements, including 15 2-way electronic digital sirens, 2-part control packages for two control point locations, 15 concrete pole packages, 15 steel pole packages and 15 wood pole packages. In addition to the hardware, the pole packages included delivery and installation.
The most competitive element of the early warning system proved to be 2-part control packages for the two control point locations. The six suppliers placed a total of 53 bids, resulting in 13 first place turn-overs and 37 time extensions. First and second place were separated by only 0.28%, indicating that true market value had been achieved.
Overall, the county enjoyed a 27% savings versus budget on the entire early warning system package.
A medium sized southern town partnered with BidBridge to purchase an emergency generator.
Eight suppliers competed to supply the emergency generator for the city. The bidding lasted just over an hour, with a total of 86 bids placed and 11 first place turnovers. The result was just 0.72% margin between first and second place bids, indicating that true market value had been achieved for the generator. Additionally, the city achieved a 31% savings versus budget for the item.