eBridge News
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.
A university hospital used eBridge’s reverse auction platform to purchase disposable gloves, masks, shoe covers, and other disposable protection materials. The 11 participating suppliers were competing over 9 line items. There were four 1st place turnovers, with 264 bids placed. The event lasted 43 minutes, with 34 time extensions. The hospital was pleased with the outcome, as they saved 40 % off their budget.
For their 3rd event a large resort/hotel chain used reverse auction for the purchase of Kitchen Equipment. There were four participating suppliers competing extensively for the opportunity to win this event. There were 123 bids placed with 8 first place turnovers. At the close of the bid the spread between 1st and 2nd place was 0.10%, reflecting true market value. The hotel chain saved 15.6% off their budget, and was pleased with the results.
In their 6th event, The City of Lakeland, FL used eBridge’s reverse auction services to procure their annual supply of Portland Cement. The 3 participating supplier placed 23 bids, with 5 first place turnovers and 8 time extensions. The competitive event led to a true market value of 0.01%, and a 14.5% saving on their budgeted value. The City of Lakeland, FL was pleased with the results, and it will quickly go to award.
The City of Frankfort, KY partnered with eBridge to procure their odor control services. The two participating suppliers placed 87 bids. The 52 minute event had 36 time extensions, and 11 first place turnovers. On their 4th event with eBridge, the City of Frankfort, KY saved 15% off their budgeted value, with a true market value of 0.27%. They were pleased with the results of the bid.
Southern California Casino ran a bid for Linen & Terry Laundry Services, with 4 participating suppliers. In the 1 hour and 6 minute event, 234 bids were placed with 59 first place turnovers. The spread between 1st and 2nd place was 1.96%, reaching true market value. This tribal gaming and resort saved 42% off their budgeted spend for a three year contract. This was their 2nd event with eBridge after procurement director’s high recommendation of his experience in the first bid. His enthusiastic recommendation to Gaming Executives reinforced the successful partnership that was developing.
The General Manager commented that we had exceeded his expectation by over 3 times the final savings that he had hoped for. Throughout the bid, the GM just couldn’t believe the competitive environment of the suppliers who wanted to earn their business. The Executive Housekeeper who worked directly with eBridge throughout this event also commented that this tool makes so much sense for all their purchasing needs. He said “The results that we received from using eBridge’s reverse auction process far exceeded our expectations. I believe this to be a very powerful tool in finding the true market value of products/services. With this process, I believe a buyer can really find their maximum savings potential.” – Executive Housekeeper & Environmental Services Manager
In the post follow up with the Executives, they both rated our process, expertise, service and results a 5 star rating or 10 out of 10 scorecard!! They are considering their next purchases for e-Procurement including linens, robes, towel and capital purchases. We look forward to serving the entire team and continuing to be an extension of their procurement strategies!!