A Minnesota poultry supplier saved 13% on their pallet wrap purchase after partnering with eBridge. Through the use of eBridge’s reverse auction event, the poultry supplier was able to stay with his current vendor, but at a reduced cost. The auction lasted only 38 minutes but had 72 bids, 17 extensions, and 11 first place turnovers. The final bid spread of the auction was only 0.0185%.
A private California company recently ran a bid for their corrugated shipping containers. There were 5 suppliers, who placed a total of 76 bids. Market value was attained with a 1.06% difference between 1st and 2nd place, after 23 total first place turnovers. This new buyer is now so pleased, they are planning to run 2 additional auctions with eBridge.
Today, eBridge facilitated a bid for a state organization’s purchase of lottery promotional items. Items included pens, t-shirts, mugs, hats and bags.
Prior to the bid eBridge worked with the purchasing organization to create specifications, this allowed for multiple vendors to bid on the contract. eBridge’s team also advised the client to structure the bid with both line item pricing and lump-sum.
One of the strongest differentiators in a reverse auction bid versus a traditional bid is the pre-qualification of suppliers. In this case, each supplier submitted samples of the company’s items. Suppliers were also pre-qualified to ensure they could fulfill the order requirements and meet delivery deadlines.
eBridge sourced multiple vendors and ultimately, the purchasing organization approved four suppliers to participate in the event. First place changed hands eight times. First and second place suppliers were separated by 0.33%, indicating that true market value was achieved.
Final low bids came in 17% below the state’s anticipated budget.
It’s no surprise that a company that prides itself in being an “innovator in the production and marketing of premium, value-added chicken products”, partnered with eBridge to purchase their stretch film for meat packaging.
The reverse auction is becoming the industry standard for purchasing professionals and this poultry company knew the reverse auction process fit with their company values to be “at the forefront of many of the industry’s top production and packaging solutions” by partnering with eBridge on this purchase.
Not only did eBridge help the organization save nearly 13% on the purchase of stretch film for their meat packaging, but eBridge brought more suppliers to the bid, ensuring this company achieved true market value for their purchase.
In a traditional paper bid process, the company would have only received 9 bids, which was the total number of suppliers. But with the reverse auction, the company received 72 bids from the nine suppliers.
Because if the efficiency and financial success of this bid, the company is poised to have a long relationship with the reverse auction process, allowing them to operate more efficiently and profitably, still producing the same quality product as they always have.