Tough Questions Can Save You from Tough Times

During hard economic times, asking tough questions can be a key factor to the success of your business. It is often uncomfortable to ask about the financial health of your business partners, but knowing those answers is vital to your business’ economic health. Buyers and Suppliers must have an honest discussion during the procurement process, or both could face heavy losses with extreme economic consequences.

An excerpt from the article Risk Management Requires Tough Questioning, By Paul Teague, highlights how many business have been affected by this economy over the last few years.

Here is a startling statistic: 49,895 businesses filed for bankruptcy in the US federal courts during the 12-month period ending September 2011. Think that’s a big number? It is – but it’s 14% lower than the number for the 12 months that ended in September 2010. In other words, business bankruptcies in the US have gone down despite a less-than-stellar economy. From a macro-economic perspective, that’s good news. From a micro-economic perspective (that is, your own personal business world), it’s only good if none of your key suppliers were among the companies going bust.

Companies, large and small are doing everything possible to add to their bottom line. They are looking for innovative ways to cut cost, and find true market value for their purchases. Reverse Auction is an exciting method that allows multiple suppliers to bid against each other, allowing the buyer to receive competitive pricing. Purchasing at true market value will allow for a more accurate budget to be developed.

eBridge provides a fully managed reverse auction service, and understands the needs of companies facing financial struggles. Our procurement team would be happy to show you how our process can work effectively with your procurement procedures.

Please contact us at sales@ebridgeglobal.com, or call us toll free at 1-800-245-8880.

To read Paul Teague’s article in its entirety click here: http://blog.procurementleaders.com/procurement-blog/2011/12/12/paul-teague-risk-management-requires-tough-questioning.html?printerFriendly=true

15.6% Saving for a Southern Indiana Company on their Flat IDC Wire Cables

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 Saves 32% on Their 1st eBridge Reverse Auction

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 Southern State Teams with eBridge for the 3rd Year for Another Successful Printing Bid

A State Procurement Office needed to procure a magazine printing contract, and partnered with eBridge for the 3rd consecutive year. There were 4 participating suppliers with 42 bids placed. After 37 first place turnovers, the spread between 1st and 2nd place ended at 1.36%, showing true market value. The Southern Organization saved 3% over last year’s price and is paying 35% less than they paid in 2008 – the last time the bid was run as a traditional sealed bid

A Southern State Saves 30% on their Lottery Promo Projects with eBridge

A Southern State needed to procure their Lottery Promotional Products, and used eBridge’s reverse auction process.   The State pre-qualified the suppliers by having them submit samples.  There were six approved participating suppliers.  At the end of the event, the taxpayers saved money because the final bid came in 30% below the budgeted amount.

Greater Peoria Sanitary District, IL, Saves 28% on their Waste Water Treatment Chemicals

Greater Peoria Sanitary District, IL, ran their waste water treatment chemical bid through eBridge’s reverse auction process. The 5 participating suppliers had an extremely competitive bid, with 271 bids places and 195 extensions. During the 62 minute bid, 1st placed turned over 86 times, with a savings of 28%. Greater Peoria Sanitary District, IL, reached true market value with a 0.6% spread between 1st and 2nd place.

eBridge’s Treatment of the City of Danville, KY, Keeps Them Coming Back

The City of Danville, KY, ran a competitive water and wastewater treatment chemicals contract, through eBridge’s reverse auction system. The 7 participating suppliers placed 261 bids, with 126 time extensions over the 1 hour and 17 minute event. The first place bid was lowered 81 times, creating a spread of .18% between 1st and 2nd place, showing true market value. The City of Danville, KY, saved 7.1% over their last years bid, and was pleased with the results.

eBridge’s Reverse Auction Strategy Delivers for Third Consecutive Year

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.

Local Agencies Take Innovative Approach to Cutting Costs

A press release in the Camden, SC, Chronicle-Independent, on October 7, 2011:

Vic Carpenter, County Administrator for Kershaw County, worked closely with eBridge to implement the first reverse auction for the task force.   “Working with taxpayer dollars, it is imperative to look at ways to innovate while still providing the highest quality products and services to our community,” said Carpenter.  “eBridge’s fees are paid by the supplier that is awarded the contract, so the agencies will realize all of the savings achieved through this bid.”  The bidders all had to provide samples in advance of the bid and had to be pre-approved before participating in the reverse auction.

“Thanks to the Synergy Task Force’s innovative, forward thinking approach to purchasing, the agencies were able to save thousands of dollars” remarked Jim Headlee, CEO of eBridge.  “It was great to work with a government agency that embraces technological change and shows great foresight and responsibility in spending taxpayer dollars.”

“The Synergy Task Force is continuing to work together and we are eager to pursue other opportunities built upon the success of this first project” said Carpenter.

To read the entire article from the Chronicle-Independent, click here: Local Agencies Take Innovative Approach to Cutting Costs.htm

To read the blog post from Kershaw County Schools Superintendent, click here: http://kcsdblog.wordpress.com/2011/10/07/collaborating-to-save-money/

Should You Join Together in Purchasing?

On spendmatter.com, guest Lynn Everard, shared insights on, The Five Worst Reasons Not to Join a Purchasing Consortium.

eBridge works with many purchasing consortiums that use reverse auctions as a method to obtain materials and services, as a cost reduction strategy. Purchasing together allows procurement operators to maximize the value of every purchase, and using reverse auction can bring an additional savings. Although there have been proven savings, many procurement leaders are still hesitant to invest in the eAuction process. Whether it is fear of the unknown or other mitigating factors, that fear could be costing your organization money.

According to Everard, below, are the five worst reasons for not joining in the new purchasing methods:

          1.       I have it all under control.

          2.       My company is really large so I have all the leverage I need.

          3.       I am a tough negotiator so I don’t need any help.

          4.       How complicated can office supplies be, anyway?

          5.       I don’t want to lose control over any of my categories.

 

eBridges understands these reasons and works with procurement teams to show that eAuctions are a powerful tool if used correctly with purchasing consortiums. Most bids can be run through eAuctions, no matter the category or complexity of your companies needs. eBridge has run thousands of bids, for the procurement of materials and services, and would be happy to show you how our process can work effectively with your procurement procedures.

Please contact us at sales@ebridgeglobal.com, or feel free to call us toll free at 1-800-245-8880.

To read Lynn Everard’s article in its entirety click here: http://www.spendmatters.com/print.cfm?id=EFA0C2B6-EDEA-650D-7AF606660103301F