A nationwide insurance company partnered with eBridge to purchase office furniture.
Two suppliers competed against one another to provide Steelcase furniture. The suppliers placed 50 lowering bids over the course of the 45 minute bid, generating 22 time extensions and 28 first place turnovers.
At the conclusion, the two suppliers were separated by a mere .16%, indicating that true market value was achieved for this purchase. Additionally, the winning bid came in 23.8% below the initial amount budgeted for the furniture. This budget number was established using catalog pricing given by Steelcase.
The company was unsure before this bid whether Steelcase suppliers would compete against one another, so they asked eBridge. By polling our supplier network, we were quickly able to discover that Steelcase distributors will in fact go head to head with one another. eBridge’s unique position as neutral party between buyer and supplier allows us to be such a resource.
This company typically uses negotiation with suppliers to ensure that dollars are spent effectively. The buyer, however, has found that the reverse auction format is the most effective way to maximize spend.