eBridge News (Commodities)
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.
A State Education Lottery has successfully been using a reverse auction strategy to purchase its promotional items like pens, cups, and t-shirts with their logo. The first two auctions came in below budget, but the third bid delivered even more amazing results. Seven bidders were approved to compete after submitting samples to the agency. The catalog price for the items was over $150,000 and the State budgeted $129,000 for the purchase. After an hour of suppliers underbidding each other, the low bid came in at $50,000! Second place was $51,900 and all seven of the bidders were at least 25% below the budgeted amount.
The City of Versailles, KY ran their 2nd chemical bid through eBridge’s reverse auction system. The City of Versailles, KY needed 12 chemicals, for a 1 year contract. The hour and a half event was extremely competitive, with 16 participating suppliers and 461 bids placed. There were 95 first place turnovers, causing a high/low spread of 0.03% and reaching true market value. The City of Versailles were pleased with the results, and saved 9.3% on their budgeted value.
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.
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 worked with the City of Elgin, IL, for the second year in a row, to obtain their supply of water treatment chemicals. There were 13 participating suppliers for the six chemicals with year-one pricing and three chemicals with year-two pricing. There were 291 bids placed, with 70 time extensions, and 70 first place turnovers. There was a true market value, with a spread between 1st and 2nd place of only 0.86%. The City of Elgin was pleased with their 2nd chemical bid ran through eBridge.
An Arkansas municipality ran a bid for wastewater treatment chemical for the third year in a row with eBridge. The total value was approximately $2 million, and the buyer was again pleased with the results. The reverse auction was run to establish a contract price on 15 different chemicals for next year. The most active chemical was reduced 83 times during the bidding. After the dust settled, 1st and 2nd place were separated by a mere 0.02%. eBridge runs chemical bids for several municipalities and water districts and now has a large number of registered suppliers that are interested in competing for the business. This particular bid had 22 different suppliers involved in the bidding.
A Kentucky city public works department ran a fully-managed purchasing event for the procurement of chemicals through eBridge Monday to achieve a savings margin of 16% against their budgeted amount. 7 total suppliers participated in this event During the event, there were 141 total bids placed, 19 first place turnovers, and 16 bid extensions. True market value was achieved through a 1st – 2nd place spread of less than 2%. This event truly models the potential of the eBridge team to deliver remarkable results to our clients. With initial bids of over $100,000 this event finished with the lowest bid coming in at $38,700.
eBridge assisted with this event from start to finish, leading throughout the entire process. We added value by sourcing additional suppliers, writing and developing specs, and training the buyer and suppliers. eBridge has extensive experience running a variety of auctions for municipals, as well as Fortune 1000 companies, medical centers, and Universities. We have run over 1300 fully-managed purchasing events such as this one, and can help any company achieve remarkable results.
eBridge recently completed a direct purchase bid for a Fortune 500 manufacturing company. The bid was for a component part and involved suppliers bidding from three continents. There were 62 bids placed, with bids coming in significantly lower than the company’s budget. eBridge conducted individualized training for the vendors and hosted the entire event through its secure website. The buyer didn’t have to invest in any additional software or staffing to run the event. In the end, the purchasing company estimates that it saved over $1 million by using this process and is currently looking at future bids on which it can partner with eBridge.