Category: Commodities

Tennessee client cooks up $1.5 million in savings on kitchen equipment

A private sector client from Tennessee collaborated with eBridge to run a reverse auction for kitchen equipment and associated services. Two vendors came to the auction and placed 63 total bids with 14 first place turnovers in under an hour. The lowest spread between 1st and 2nd place was 0.91%. With a savings of $1.5 million, our client saved 40% of their projected $3.6 million budget. 


State tracks savings on rails to 29%

This state’s Transportation Department and eBridge, partnered together to procure used railroad rails at a great price. The 3 suppliers, who participated in the auction, placed 47 bids with 29 first place turnovers in 21 minutes. Though the auction only lasted a few minutes, it saved the state $79,490 on the purchase. In the end, the spread was only 0.12% between first and second place bidders, saving the state 29%!

State Department of Corrections filters prices to save 27%

eBridge collaborated with this state’s Department of Corrections for their air filters purchase. The approved 3 vendors placed 8 bids with 5 first place turnovers. Competition was fierce throughout this lighting fast 19-minute bid, which resulted in a spread between first and second place of 1.07%, and saved the state 27% on this 5-year contract.

IL City’s Water Tastes Better With Great Savings 4 Years in a Row

Even though it is their 4th year using eBridge for their Water Treatment Chemicals, the savings are still pouring in for a city in Illinois.  This year, the reverse auction process saved them approximately $184,800 on their four chemicals.  Nine suppliers placed 136 bids which allowed for true market value to be found with a spread between 1st and 2nd place of 0.76%.

Reverse Auction For Water Agency Delivers Value

A water agency for a southern city ran its second reverse auction with eBridge and it produced some dramatic savings.  The bid was for sodium hypochlorite and phosphoric acid.  There were at least four bidders in each category and the online bidding was very active for forty minutes as vendors competed for the business.

When the event concluded, the agency calculated that they lowered their annual expenditure on sodium hypochlorite by $80,000 and phosphoric acid by $112,000, representing a savings of 35%.  The reverse auction technology is important.  However, at eBridge, we believe that the proprietary process that we’ve developed is what differentiates our service and enables the reverse auction to deliver maximum value.

The purchasing manager for the agency said, “eBridge brought a level of expertise to the table that minimizes public expenditures to the greatest extent possible. eBridge expands the database of qualified vendors which provides greater opportunities for offers. Prior to the bid event eBridge provides individual training to each vendor ensuring there is a complete understanding of what is required in order to submit responsible and responsive offers. eBridge also handles all the administrative duties normally assigned to the purchasing agent associated with the dissemination of bid documentation ensuring that consistency, transparency and integrity is achieved throughout the process. I would highly recommend using e-Bridge if the opportunity arose to enhance your organization’s ROI wherever possible.”

Reverse Auction Delivers Chemical Savings Again

A large water and sewer agency in South Carolina recently ran its second annual chemical bid with eBridge and once again lowered its chemical costs.  These results were consistent with other water agencies that have run multiple events with eBridge.

There are several reasons why eBridge can deliver savings in successive years on the same commodity.  First, we are constantly sourcing to bring additional qualified suppliers to our bids.  Second, the suppliers are coming into the bids prepared to lower their prices and compete for the business.  Third, we are constantly working to become better at the process of running an effective reverse auction and the results prove that we handle the details exceptionally well.

A well run reverse auction creates real time free market competition that delivers the best market price for a buyer.  There are many steps to running a great reverse auction and eBridge has the expertise and experience to deliver value for our clients.

Happy 7th Annual Road Salt Reverse Auction

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.

Four water agencies ran their first reverse auction chemical bids through eBridge in November

We have found that chemical bids are a great fit for reverse auctions because they create a highly competitive environment for commodity purchases. Budgets are tight and if your agency is looking for strategies to control chemical costs, it could make sense to consider a reverse auction bidding strategy. Below is a summary of the most actively bid chemicals:

South Carolina City (Population 120,000)
Chlorine 3 Suppliers 36% decrease from 2012 pricing
Lime 4 Suppliers 21% decrease from 2012 pricing
Phosphoric Acid 6 Suppliers 43% decrease from 2012 pricing
Sodium Hydroxide 6 Suppliers 14% decrease from 2012 pricing
California City (Population 209,000)
Granular Activated Carbon 3 suppliers 24% decrease from 2012 pricing
Kentucky City (Population 740, 000)
Sodium Hydroxide 4 Suppliers 11% decrease from 2012 pricing
Pennsylvania City (Population 300,000)
Calcium Hypochlorite 3 suppliers 14% decrease from 2012 pricing
Caustic Soda (25%) 4 Suppliers 42% decrease from 2012 pricing
Copper Sulfate 4 Suppliers 13% decrease from 2012 pricing

Reverse Auction Saves KY Agency 15% on Their Chemical Purchases

Having consecutively run their last 5 chemical bids through eBridge’s reverse auction and achieving an estimated overall savings of $175,376, running the 6th consecutive chemical bid was a no-brainer for this KY Agency.  This bid had 3 approved suppliers competing for the agency’s annual contract for Ferric Sulfate purchases.  During the 36 minute bid, 56 bids were placed with 20 first-place turnovers.   The expected savings is $36,000 or 15%.   This shows with even just a few competitive suppliers, the reverse auction can still provide significant savings.

eBridge Runs Large Water Treatment Chemical Bid in South Carolina

One of the largest water & sewer agencies in South Carolina teamed with eBridge to run their annual chemical bid.  There were 19 chemicals included in the bid and twenty participating suppliers.   Overall, the budget for chemicals annually is over $3 million and the agency realized savings on their largest spend categories.  For instance, Aluminum Sulfate accounts for more than half the budget and the agency shaved $70,000 off their annual cost for that chemical.  Fuel prices have been driving up chemical prices because delivery costs are increasing.  This agency was able to take positive steps to control their costs.