eBridge News
Columbia, SC, August 3, 2010–With reports of budget crises in nearly every state, the state government of South Carolina is taking action by incorporating cutting edge technology and industry best practices to increase efficiencies in its purchasing process. One major addition to its purchasing techniques is the reverse auction.
A reverse auction is a secure, real-time electronic sealed bid platform that allows suppliers to place multiple bids, rather than the one price per supplier response traditionally used in the paper bid process.
In July 2009, the State of South Carolina engaged eBridge Business Solutions, a proven eProcurement services provider, through a state contract. Since the inception of the contract, the State has utilized the reverse auction process for purchases budgeted at $5,344,000, resulting in over $1 million or 20.8% savings versus budget.
This savings was achieved over the course of 11 events between the Department of Transportation (DOT) and Information Technology Management Office (ITMO) on behalf of the Department of Motor Vehicles (DMV), Coastal Carolina University, Trident Tech, Midlands Tech, and Department of Natural Resources. A total of seven state organizations have utilized the reverse auction process.
“The State of South Carolina serves as a model for other states by incorporating best practices in purchasing through the reverse auction process”, said Jim Headlee, CEO of eBridge, “We commend State leadership for leveraging technology to be responsible stewards of tax payer dollars.”
The State is scheduled to run several more items this year as well as other city and local government organizations.
About eBridge
Founded in 2002, Louisville-based eBridge provides fully managed business solutions creating efficiencies and streamlining business operations. Leveraging years of experience in purchasing, sourcing and budget management, eBridge Business Solutions’ full suite of services includes purchasing, merchant card management, web based payroll and corporate purchasing cards. For more information, visit: www.ebridgeglobal.com.
Press Contact:
Whitney Headlee
Director of Sales and Marketing
whitney.headlee@ebridgeglobal.com
A city in Oklahoma left the end of their auction on Tuesday thrilled with eBridge’s results. Join the club we say! The items up for purchase were laptops and laptop docking stations. In the auction there were 88 total bids and 33 first place changes and eBridge saved the purchaser 2.71% off the city’s total budgeted price.
In the city’s last purchase of laptops, they paid $4200 per unit and on Tuesday they paid $3300 per unit. That is a 21.4% savings! Even more remarkable, they saved 43.7% from their last purchase of docking stations!
We strive to satisfy the buyers with the highest savings possible but not only are we saving our clients money we offer our top-notch expertise. If you’re interested in letting us sit on your side of the table you know where to find us!
Yesterday eBridge ran a bid for a school district in Illinois and saved them 27% on their budgeted price. Our faithful operations team sourced five copy paper suppliers and four of them bid in the auction. The suppliers bid a total of 99 times and first place changed 27 times.
A neighboring school system put out a bid for copy paper through the traditional paper bid process where suppliers may only submit one bid in order to win the business.
The school system that purchased the copy paper through the paper bid process paid $29.50 per case and our client paid $27.43, which is a savings of 7%. See, the paper bid does have a purpose. Its purpose here was to serve as a reference point.
The real savings is through eBridge and our reverse auctions. Have a great weekend!
Today at eBridge we had a successful bid run for a light-duty rescue truck. A northern city needed to purchase one and eBridge was more than happy to assist. We sourced 12 suppliers to bid, seven of which were new suppliers that had never had the opportunity to earn the city’s business.
Our team of procurement professionals trained each supplier on how the bidding process works and the auction was successful. There were 126 total bids and first place changed 10 times. Since the city chose to run this purchase through the reverse auction format we were able to save them 9.09% off their original budgeted price. We average a savings of 14% but the real goal is to achieve true market value. In this case, true market value was 9.09% below their budgeted price.
Remember eBridge for your light AND heavy-duty needs!
Today at eBridge we ran an auction for wheel loaders. This auction was unique because the purchaser was trading in their two old wheel loaders and purchasing two new ones. In the auction, the supplier bid up the trade-in value for the old wheel loaders’ and bid the new wheel loaders’ price down.
We sourced eight suppliers and there were 142 total bids made. First place turned over 13 times and the winning price came in with 9% savings. We were pleased with the results and look forward to doing business with this purchaser again.
In 2009, eBridge ran a successful auction for a garbage truck for a small city in Oklahoma. This year the city has come back to us to purchase three more trucks. This time they decided to run two separate bids with us; one for the cab and chassis and the other for the trash packer. Six suppliers competed over the packers and four over the cab and chassis. The overall saving generated was 3% and true market value was achieved in both auctions with less than 2% between first and second place.
Here at eBridge we provide a quality “no garbage” process and we would love to run your next purchase through a reverse auction.
In another auction for the DMV the competition was steep for print forms. Three suppliers bid 108 times exchanging first place over 100 times. The auction was extended 102 times further reaching towards the goal of achieving the lowest price possible. When the auction was over the winning bidder came in 5.5% below the purchaser’s budget.
From supplies in your office closet to print forms, eBridge is the answer to your purchasing needs!
eBridge just did an auction for some elementary school furnishings. A west coast school district needed 300+ game rugs along with game kits to play on the rugs. We reviewed the specs for the rugs and decided our process would be of great benefit to the school district.
Six rug suppliers bid over 100 times in the action and first place changed twenty-two times. Successful once again! We saved the school district a little more than 11% off their budgeted price. We’d like to save you the same amount if not more…so run an auction with us!
Yet another successful auction runs with eBridge! Tommy Edge, our Georgia representative, was present for the pine straw mulch bid where eBridge brought six suppliers to the table. There were fifty-eight bids placed and ten time extensions. Over the course of the bid, first place changed hands ten times with an end result of over 34% under the purchaser’s budget.
Our number one goal it to give our clients the edge in the market and we do that by helping them achieve true market value. In this mulch bid we reached that goal with a 1.4% difference between the first and second place bidders. As your partner, we want to achieve this for your business purchasing needs so give us a call!
What are you going to the airport for, flyin’ somewhere? In an auction for a city airport we were successful yet again. The auction was for a runway deicer unit used to keep those icy runways dry and keep those flight delays short.
Three suppliers and 61 bids later the winning bidder came in 30% lower than the budgeted price. We average a savings of 14% but this turnout isn’t a rare occurrence for us. Whether you’re icing or deicing we’re your procurement manager.