eBridge coordinated with a state’s finance cabinet to run a reverse auction for office supplies. Three vendors placed 112 bids with 12 first place turnovers and 31 extensions resulting in a phenomenal 31% savings! With a spread between 1st and 2nd place of 0.41%, the total this state saved on their office supplies came to over $3.2 million on a five-year contract.
A Kentucky hospital worked with eBridge to purchase shredding services for their 500+ bed campus and medical offices. Eight suppliers furiously competed for the business, placing 162 bids in under an hour with 63 time extensions, 9 first place turnovers, and a final spread between 1st and 2nd at 2%. Savings for the hospital came to just over 36% on this three year contract.
eBridge partnered with the State of South Carolina to purchase light bulbs, lamps, and ballasts for the Materials Management Office. eBridge helped them to save over 4% on the total purchase which equated to over $100,000 in savings. The auction lasted for 61 minutes including 56 lead turnovers and 67 bids placed. After the 3 participating suppliers finished bidding, the spread between first and second was only 0.0051% showing that true market value was achieved.
A school district in Hawaii was looking to procure new furniture for its classrooms and library. The district partnered with eBridge to find the right supplier at a great price. eBridge helped the schools save a total 36% on furniture using its reverse auction process. The auction consisting of 6 suppliers and had 134 bids, including 23 first place turnovers. The final spread between first and second place bidders was only 0.0004% which let the school know they got true market value.
A national hotel chain banked big savings on office supplies through their 2nd bid with eBridge. Four suppliers participated, making for an exciting bid with 78 placed bids and 31 first place turnovers declaring the lowest spread between 1st and 2nd place at 0.41%. The hotel was very happy with the results and cut their budget nearly in half by saving 49%!
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.
The Department of Corrections for a Southern State ran their 12th reverse auction bid with eBridge today. The event was a live online bid for bar soap and it was one of the most competitive bids ever run by eBridge. Four suppliers were pre-approved to participate in the bid. A good reverse auction is generally defined as one that has 10 or more first-place turnovers and a spread between 1st & 2nd place of less than 2%. The original clock started at 15 minutes and because the bidding doesn’t stop until no lowering bids are placed in the final three minutes, the event went for 115 minutes. In the end, there were an amazing 321 first place turnovers and a spread of just .10% between first and second place. This bid was last run in 2007 as a traditional sealed bid. Thanks to a successful reverse auction, the cost of soap actually decreased by 9.5% for the state and its taxpayers.
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 hosted two separate reverse auctions for the University’s three (3) year contracts for Copy Paper and Ink & Toner purchases. Eight (8) suppliers competed for 67 minutes on the Ink & Toner, placing 71 bids while Seven (7) suppliers competed for the copy paper placing 53 bids during the 43 minute auction. The high-low spread for both auctions came in under 2% —- again reflecting true market value. Together, both auctions will save the University $1.2 million or 16% over the three (3) year contract periods.
By inviting 4 other campus locations to participate in their 2nd reverse auction with eBridge, this University more than doubled their bid volume making it a much more attractive bid for participating suppliers. Several of the campus locations felt they were already getting the best possible price but still wanted to participate. Six suppliers were excited to compete for the University’s business placing 309 bids with 39 first place turnovers during the 74 minute event. The high-low spread between 1st and 2nd place was 0.83% proving true market value. The auction produced a total savings of $65,500 or 15% under budget, again proving this technology and process works. They are reviewing their largest purchases and identifying which will be the next good fit.