eBridge News

eBridge’s Reverse Auction Strategy Delivers for Third Consecutive Year

A southern state ran a printing contract for the third consecutive year as a reverse auction bid through eBridge.  There were four pre-approved bidders and because two of the bidders were willing to compete aggressively for the business, it was a very exciting auction.  The low bid was reduced 37 times over the course of an hour and the price dropped about 25% from the opening bid.  In the end, the taxpayers will be paying 3% less than they paid the previous year and 36% less than they paid for the same contract when it last ran as a traditional bid in 2008.

Local Agencies Take Innovative Approach to Cutting Costs

A press release in the Camden, SC, Chronicle-Independent, on October 7, 2011:

Vic Carpenter, County Administrator for Kershaw County, worked closely with eBridge to implement the first reverse auction for the task force.   “Working with taxpayer dollars, it is imperative to look at ways to innovate while still providing the highest quality products and services to our community,” said Carpenter.  “eBridge’s fees are paid by the supplier that is awarded the contract, so the agencies will realize all of the savings achieved through this bid.”  The bidders all had to provide samples in advance of the bid and had to be pre-approved before participating in the reverse auction.

“Thanks to the Synergy Task Force’s innovative, forward thinking approach to purchasing, the agencies were able to save thousands of dollars” remarked Jim Headlee, CEO of eBridge.  “It was great to work with a government agency that embraces technological change and shows great foresight and responsibility in spending taxpayer dollars.”

“The Synergy Task Force is continuing to work together and we are eager to pursue other opportunities built upon the success of this first project” said Carpenter.

To read the entire article from the Chronicle-Independent, click here: Local Agencies Take Innovative Approach to Cutting Costs.htm

To read the blog post from Kershaw County Schools Superintendent, click here: http://kcsdblog.wordpress.com/2011/10/07/collaborating-to-save-money/

Should You Join Together in Purchasing?

On spendmatter.com, 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 sales@ebridgeglobal.com, or feel free to call us toll free at 1-800-245-8880.

To read Lynn Everard’s article in its entirety click here: http://www.spendmatters.com/print.cfm?id=EFA0C2B6-EDEA-650D-7AF606660103301F

eBridge Cooks Up a 13% Savings for Agua Caliente

Agua Caliente Band of Cahuilla Indians, teamed with eBridge to acquire their culinary uniform and linen services. Six suppliers participated in the event, which lasted for 48 minutes. There were 83 bids placed with 15 first place turnovers and market value was achieved when the auction ended with a 1st and 2nd place spread of only 1.35%. Agua Caliente saved 13.52% on their budgeted value.

During the auction, Agua Caliente Executives were assured of their choice to partner with eBridge when the 3rd place supplier reduced its bid by 50%.  That suppliers lowering bid put them within a few dollars of the 1st and 2nd place suppliers. This created “credibility”, as stated by an Agua Caliente Executive, of Reverse Auctions as a strategic procurement tool to provide True Market Value of the products and services they were purchasing. Executives also stated they were confident they were getting the best price for the product and services rendered from process.

The Link Between Success and Innovation

There is no success without innovation and there is no innovation without failure. This is a article from Zdnet.com 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.

http://www.zdnet.com/blog/projectfailures/success-and-innovation-the-simple-truth-of-outcomes/14429

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.

A Private Indiana Company Saves Big on Their 2nd eBridge Reverse Auction

A private Indiana company employed eBridge’s reverse auction process to acquire 45 new Scienscope Cameras and Dell Monitors.  There were 6 participating suppliers that placed: 138 bids, with 29 time extensions, and 30 first place turnovers. The competitive bidding ended with 1 penny separating the 1st and 2nd place suppliers. The Indiana company saved 22% off their budgeted value with their second bid with eBridge.

The City of Elgin, IL Runs a $1 Million Dollar Chemical Bid With eBridge

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.

Hollywood, FL Security is Secured With eBridge

The City of Hollywood, FL wanted to contract security services through eBridge’s reverse auction process. The bid was extremely competitive with 23 approved suppliers. There were over 2,338 bids placed, with 177 time extensions, and 97 total first place turnovers. The lowest spread between 1st and 2nd place was a mere 0.07%, an amazing true market value. The City of Hollywood had a 36% savings on their budgeted value.

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.

Competitive Paper Bid for a Georgia County

eBridge teamed with a Georgia county to purchase copy paper. There were 12 highly competitive suppliers, with 28 first place turnovers. The 30 minute bid had an additional 39 time extensions, as the suppliers continued to lower their bids. The spread between 1st and 2nd place was 0.11%, showing an amazing true market value. The Georgia country had a savings of 6.67% on their budgeted value. They were pleased with their savings, as the fuel price increases this year has added cost to their paper deliveries.