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.
Due to rising fuel costs, the Buyer expected an increase in their quarterly purchase price. They partnered with eBridge to run the bid through the reverse auction process with a goal of keeping the increase to a minimum. The Buyer’s goal was reached and the bid was a success. eBridge sourced 28 suppliers and 8 were approved to participate. The 8 suppliers competed for an hour and 11 minutes, placing 231 bids which resulted in 151 first-place turnovers. Achieving true market value, the spread between 1st and 2nd place was 0.13%. The Buyer was very pleased with the bid results and the bid has gone to award.
Although eBridge’s preference is to source 5 suppliers per bid, this bid proves that it only takes 2 aggressive suppliers competing to achieve true-market value to get great results. eBridge sourced and invited 27 suppliers to participate in this event but because several of them could only supply part of the required services, only 2 were approved for participation. However, during the 23 minute reverse auction, these 2 suppliers placed 142 bids resulting in 38 first-place turnovers. The spread between 1st and 2nd place was 0.57%. If awarded to the lowest bidder, the University will save at least $83,809 or 35% on the 5-year service Agreement.
This bid has been in the making for just under a year. After many conference calls between eBridge and the Buyer, to get a complete understanding of and determine the best way to achieve what the Buyer was looking for, we finally reached the bid date 10 months after discussions began. All of the hard work and attention to detail was the perfect set-up for a great bid! 7 of the 15 sourced suppliers participated in the 47 minute reverse auction, placing 145 bids with 18 first-place turnovers. The spread between 1st and 2nd place was 0.14%. The anticipated annual savings to the Hospital is $51,212 or 30%.
The University Facilities Department identified a specific lighting fixture for use in its garage structure. The bid required a specific luminaire from a specific manufacturer, which can be challenging when sourcing for reverse auction. However, since there are multiple suppliers of this particular manufacturer’s brand, eBridge was able to source and invite 55 suppliers to participate. Of the 6 suppliers that did respond to the bid, 5 participated in the live event. During the 35 minute event, 60 bids were placed resulting in 24 first-place turnovers. The final spread between 1st and 2nd place was 0.13% ($1.00 price difference per unit). Based on an average estimated retail price for this particular luminaire, this University will save $40,000 on their purchase.
After achieving significant savings for their chemical purchases through eBridge’s reverse auction process in 2011, this Albany, KY agency was ready to see what the reverse auction would bring in 2012. Initially a few of the chemicals had limited supplier participation but through additional sourcing efforts by eBridge, 8 suppliers placed 292 bids between the 7 chemicals. There were 118 first place turnovers during the hour and 12 minute bid. The high-low spread between 1st and 2nd place was .04% with a savings of $47,588 or 23%.
eBridge ran a very successful auction for a local water & sewer agency in North Carolina. It was their first experience with reverse auction and they started with 5 chemicals: Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic). The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees. All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level. In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease). The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year. eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.
eBridge ran a very successful auction for a local water & sewer agency in North Carolina. It was their first experience with reverse auction and they started with 5 chemicals: Potassium Permanganate, HFS, Acetic Acid, Ammonia and Sodium Hydroxide(caustic). The suppliers were asked to provide a fixed price for one year that included all fuel and delivery fees. All of the chemicals had multiple suppliers, with the exception of acetic acid, but the incumbent held the acetic acid pricing at the same level. In the other four categories, the 1st & 2nd place suppliers ended with bids within 1% of each other. There were some dramatic savings realized for potassium permanganate (37% decrease) and sodium hydroxide (52% decrease). The HFS and ammonia held steady on price, but the agency is guaranteed that price for the next year. eBridge fees are paid by the awarded supplier, so there was no direct cost to the agency to run this bid.
eBridge hosted two separate reverse auctions for the University’s three (3) year contracts for Copy Paper and Ink & Toner purchases. Eight (8) suppliers competed for 67 minutes on the Ink & Toner, placing 71 bids while Seven (7) suppliers competed for the copy paper placing 53 bids during the 43 minute auction. The high-low spread for both auctions came in under 2% —- again reflecting true market value. Together, both auctions will save the University $1.2 million or 16% over the three (3) year contract periods.
By inviting 4 other campus locations to participate in their 2nd reverse auction with eBridge, this University more than doubled their bid volume making it a much more attractive bid for participating suppliers. Several of the campus locations felt they were already getting the best possible price but still wanted to participate. Six suppliers were excited to compete for the University’s business placing 309 bids with 39 first place turnovers during the 74 minute event. The high-low spread between 1st and 2nd place was 0.83% proving true market value. The auction produced a total savings of $65,500 or 15% under budget, again proving this technology and process works. They are reviewing their largest purchases and identifying which will be the next good fit.