Category: Road salt
An Ohio county partnered again with eBridge to run reverse auctions for their annual road salt purchases. eBridge has continued to find market value for this Ohio county year-after-year. This year, 5 suppliers met the Buyer’s requirements and were approved to participate in the bid, 2 were sourced by eBridge. During the 23 minute auction, the 5 competing suppliers placed 175 lowering bids resulting in first place changing hands 11 times. If awarded to the low bidder, the buyer will save $9.45 per ton over last year’s price.
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.
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.
A Kentucky city partnered with eBridge to purchase their road salt in preparation for the winter months. eBridge ran this same bid last year and the city knew the reverse auction process was necessary for their city to purchase the salt at a competitive price point.
eBridge’s team of purchasing professionals sourced suppliers for this bid, with four being chosen by the city to participate.
During the bidding event, a total of 160 bids were placed among the four suppliers, resulting in 80 first place turnovers and 59 extension of the clock, indicating the suppliers were ready to compete for this business.
At the conclusion of the bid, the city had realized a 10% savings versus last year’s pricing, indicating that while they purchased competitively last year through the reverse auction, they achieved true market value for their purchase for both this year and last.
A mid-western city partnered with eBridge yet again to establish a road salt bid with one year extensions for the next four years. eBridge established the city’s road salt contract 5 years prior and with the contract up for renewal, the city looked to our team of purchasing professionals to deliver for them, yet again.
As purchasing professionals know, establishing road salt contracts early in the year helps your organization get a competitive market price for your purchasing jurisdiction.
The city anticipated a specific price per ton, however, at the conclusion of the reverse auction event, the auction yielded a low bid 15.38% lower.
After a year when road salt prices were significantly higher than normal, prices appear to be declining for this year. eBridge hosted our first road salt bid of the 2010 season for a large Midwestern county.
Six suppliers from across the country bid on the contract. Throughout the course of the competitive bidding event, first place changed hands 19 times, resulting in a total of 98 bids placed among the six suppliers.
The bid concluded at 7.99% lower than 2009 purchase price, providing savings versus last year’s budget for the county and providing a key indicator that prices may be dropping for the 2010 salt purchasing season.