Category: Article

Should You Join Together in Purchasing?

On, 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, or feel free to call us toll free at 1-800-245-8880.

To read Lynn Everard’s article in its entirety click here:

The Link Between Success and Innovation

There is no success without innovation and there is no innovation without failure. This is a article from about the perception of success being achieved in a straight line. Success is a process, of failures and achievements, sometimes you must go backwards to make your way forwards.

Success and innovation: The simple truth of outcomes

By Michael Krigsman | September 29, 2011, 6:20am PDT

Summary: A peek inside the truth of success and failure.

Success and failure are relative states of perception that we define based on expectations and perceived value.

Less innovative organizations misunderstand the nature of success, equating it with ideal process. For people in those companies, success means following process irrespective of results. However, innovation suffers when results become slave to process.

In truth, innovation and success require discovery, as we adapt, learn, and progress toward the goal.

North Carolina Hospital Association Selects eBridge as Strategic Partner

eBridge has been selected as the exclusive provider of reverse auction services by the North Carolina Hospital Association Strategic Partner Program.  The NCHA sees eBridge as a great solution for member purchases that are not covered by their current Group Purchasing Organization.   NCHA members needed a way to run bids on non-medical equipment like copiers, furniture, and generators and eBridge gives them a solution.  Additionally, eBridge is great for capital improvement bids and local service contracts for the healthcare industry.  eBridge was selected after NCHA representatives contacted ten references and presented the solution to their board.

Federal Government Could Save Billions Through Reverse Auction

A recent study conducted by the Reverse Auction Research Center revealed that the federal government could save over $4 billion annually by running more commodity and simple service purchases through the reverse auction model. Reverse auctions is already used in some federal government agencies, but not all – and it has not even touched its full potential as a government purchasing best practice.

The Reverse Auction Research Center’s study identified 17 key government sectors in which reverse auction could yield the most savings, with the Department of Defense, Department of Veteran Affairs, and the Executive Branch coming in as the top three.

This quote from David Wyld sums it all up: “There are a lot of tough choices to be made in cutting federal spending, but one solution is a no-brainer: use more reverse auctions for simple buys.”

In light of the current financial difficulties our country is having, reverse auction implementation and expansion would provide much needed savings to our Nation’s bottom-line. eBridge believes that the implementation of reverse auction would provide valuable savings to any government sector willing to take leadership and utilize the technology. We hope to see this practice adopted increasingly in the near future as U.S. citizens and government officials realize its potential for incredible savings.

To see the article from Business Wire, click here

Reverse Auctions Help Agencies Save Money

In a recent article from, author Jessica Mulholland describes the remarkable savings achieved by government agencies and private companies utilizing reverse auction technology. The prime example from the article, Maricopa County, Arizona, discovered reverse auction when they became tired of paying a premium price for a commodity that was being sold to them at far above market value. Once they learned about reverse auction and the savings it creates, they began running any purchase through it that they could. As a result, they uncovered dozens of purchases on which their margins were greatly decreased for their bottom line – saving millions of dollars on everyday items such as flour and peanut butter, but even more specific items as well.

Mulholland also points out that in reverse auction quality is still factored in, as the buyer is not restricted to awarding to the lowest bid – they have the option of awarding to 2nd, 3rd, even 4th placed suppliers if they feel that bid is the highest in value or quality to their company.

eBridge offers the same incredible results discussed in this article – all at no direct price to our clients. There is truly no substitute for a professional team like ours at eBridge that runs and fully-manages large purchasing transactions through reverse auction from A to Z.

7 Myths of Reverse Auction

Everyone familiar with reverse auction knows that there is a large amount of opposition out there facing those who believe in this process. Everyone in the purchasing industry – whether they have been directly involved with reverse auction or not – has formed a positive or negative opinion through the years based on their particular experience with reverse auctions, as well as their relative perceptions of the industry as a whole. This article from Supply Excellence does a great job of addressing many of the key objections to the reverse auction model.

At eBridge, we believe that all of the myths/objections to reverse auction listed in this article can be addressed professionally and appropriately, creating an end result that is beneficial to both the buyer and suppliers in a purchasing transaction.

We understand that many people have either had a poor experience with reverse auction, or are opposed to it because of what it can be. However, we believe that the reverse auction purchasing model can actually be beneficial to almost any business model when applied through our professional and respected team of experts. We do our part to run purchases with integrity, and with respect towards both the buyer and suppliers – maintaining key relationships that every company desires, and creating value not solely through pricing.

FCC’s Final USF Reform Workshop

A recent article from discusses the recent Federal Communications Commission (FCC) final workshop in a series devoted to the Universal Service Fund (USF). The goal of the fund is to help extend broadband service to uncovered areas across the United States. Workshop discussions included how and to whom funding will be appropriated. The FCC has proposed using reverse auctions to award financial assistance to broadband service-providing telco companies.

The reverse auction proposal would limit government funding to a single entity that would provide service to the entire service area. Providers would enter into an auction wherein the company that could provide the service with the lowest level of government funding would win.

What do you think? Should the FCC use reverse auction technology to award the contracts? Is this an appropriate item for the process?

FCC Explores Reverse Auction in New Broadband Expansion

A recent article from Connected Planet Online outlines the Federal Communications Commission’s current exploration of potential methods to extend broadband internet access to the entire continental US, with a specific focus on under-served rural areas. The FCC plans to accomplish this broadband expansion by financially assisting selected private telecommunications companies in their endeavors to extend their services to rural areas that are not currently receiving broadband internet service.

The question is: which private telco companies will the FCC select?

Among the FCC’s most viable options in selecting telecommunications suppliers is the utilization of reverse auction to award contracts. The FCC could implement reverse auction services to create competitive pricing between companies and thus incentivize suppliers to extend their services at the lowest price possible by selecting to award the lowest bidding supplier with financial assistance.

There are, however, some significant obstacles to the reverse auction process’ successful implementation here. First, satellite-based internet suppliers would have a significant leg-up in the bidding process as their services require considerably less installation overhead than cable-based services. Should they still be allowed to compete in the bidding process? Second, AT&T and Verizon already have a significant amount of market-share and are most likely the favored suppliers going in, which leads us to the question of: will this bidding process further oust business from smaller, local telecommunications providers?

eBridge recommends that the FCC explore the viability of this purchase through reverse auction. While reverse auction can be an incredible tool, it may not be the perfect fit in this particular application. If some suppliers are more capable than others in fulfilling bid specifications, perhaps the FCC should table their use of reverse auction to a different project. eBridge takes leadership not only in the execution of the reverse auction process , but also in preliminary analysis to determine the viability of reverse auction in specific applications. Half the battle is finding the right fit for reverse auction to be successful.

The 6 Pitfalls of Reverse Auctions

In a white paper published by ThreeCore Purchasing Consultants, the author highlights six common pitfalls of reverse auctions.  Below each pitfall, I address the objection and how our services complement each roadblock.

At eBridge we work hand-in-hand with our clients to not just avoid pitfalls, but achieve remarkable results. Take a look at these pitfalls and let us know what you think.

1. Lack of supplier preparation: Prior to the event, eBridge gives one-on-one tutorialsto each pre-approved supplier.  Our procurement team is available throughout the process for additional training and to answer questions that will naturally arise.

2. Inviting the wrong suppliers:  Although a key part of our process is supplier sourcing and recommendation, the buyer always reviews and approves which suppliers will participate.

3. Including too many suppliers:  A common misconception in reverse auction procurement is that the number of participating suppliers determines a successful event.  Through eBridge’s sourcing and recommendation process, our team brings an average of 32 suppliers to the buyer for their consideration.  On average, 6 suppliers participate per event.  A competitive environment is the ultimate goal for our customer.  

4. Starting with difficult materials:  At eBridge, our team provides the expertise to determine which items are appropriate for the process.  Our comprehensive Spend Analysis report provides customers with a full view of the items on their upcoming purchasing schedule that will fit the process.  Our analysis clearly defines the items that fit the reverse auction process- and those that do not.

5. Not enforcing the rules:  Reverse auction software companies and third party providers do not provide the leadership and guidancenecessary to integrate reverse auctions into your purchasing strategy.  At eBridge we recognize that leadership is an integral part of the solution.  Our mission is “to provide leadership in reverse auction procurement and process change that creates meaningful value for our customers.”

6. Setting artifically low targets:  At eBridge, the cornerstone of our services is to allow the free market to reign.  The competitive environment created through our process yields an average net savings of 14%, but ultimately gives customers assurance they are purchasing at market.

Achieving successful change with reverse auctions

Last week on guest blogger Barbara Kivowitz, shared insights in adopting new technology successfully.  Kivowitz writes:

One of the most formidable challenges an organization faces when implementing new technology is simply getting employees to use these tools and the new processes they support.  Senior management budgets development costs and training, but typically under-invests in the change management efforts needed to turn technology into the strategic transformation the business expects.

Underestimating the impact of technology-driven process change on employees is a key factor in project failure, even when deploying excellent technology.

Communication, collaboration, and knowledge sharing are the critical factors for achieving project success.

At eBridge, we work with customers to make reverse auction procurement an integral part of their purchasing strategy.  And that doesn’t just include running an auction.  Our team of procurement professionals work hand-in-hand with our customers, providing the tools to implement the reverse auction process and also the leadership through education and training to achieve long-term success.

In the most literal sense, implementing new technology into an organization requires individuals to perform their job in a new way.  While senior management might buy in to the reverse auction process, we also deliver extensive training and education so our customers are comfortable and ready to take on a new opportunity that will achieve remarkable results for their organization.

How is your organization adopting change?