Category: Article
I recently read an article about the importance of having clear purpose for your organization. I learned that establishing a clear purpose early on in your history provides a foundation and reference point from which you make decisions now and in the future. With a clearly defined purpose, you can look at an opportunity or a challenge and ask yourself, ‘Is this the right thing to do given our purpose?”
At eBridge, our purpose is to help customers implement the reverse auction process by leading them in orchestrating organizational change.
As eBridge seeks new business opportunities, our team members share our purpose with customers so they can determine if our purpose aligns with their organization’s needs. In turn, we ask ourselves, “Is engaging with this customer staying true to our purpose?” Making principled decisions helps you stay focused on your core business offerings so you can deliver your product or services with the highest quality.
It’s not what you sell; it’s what you stand for. And while staying true to your purpose may require you to pass on some business opportunities, it will help you determine what organizations are the best fit for your products or services- leading to growth and profitability.
What is your organizations’ purpose?
Individuals are an organization’s greatest asset. Creating an environment where employee’s thoughts and ideas are valued and where they feel comfortable sharing these insights, is an organization’s greatest opportunity to soar- in productivity, job satisfaction and morale. When leadership learns to effectively facilitate open communication, employees handle change with greater ease- transforming organizations and employee potential.
In a recent article entitled, The Biggest Mistakes in Managing Change, Dr. Carol Goman outlines several common mistakes organizations make when managing change. The most pivotal mistake she discusses is not being aware of the importance of people, under-valuing their opinions and feedback and not making them part of the process.
Statistics show that nearly 75% of all restructurings fail- not because of strategy, but because of the “human dimension”. Organizations don’t change- people do or they don’t. If staff people don’t trust the leadership, don’t share the organization’s vision, don’t buy into the reason for change, and aren’t included in the planning- there will be no successful change- regardless of how brilliant the strategy.
The use of reverse auctions is rapidly increasing in businesses across the world. The online auctionprocess creates tremendous efficiencies and dramatic cost savings- but does require organizational change.
eBridge, a reverse auction consultant, provides leadership in running the reverse auction process and understands the value of people and orchestrating process change- getting everyone “in on things” to collectively implement the purchasing solution.
Technological innovation, including online reverse auctions, continues to shape the way companies do business. Will your organization be a part of the change?
Reverse Auctions have been around since the mid-1990s and have grown in popularity with the evolution of the Internet and its role in business commerce. Companies like GE, Target, 3M and Pfizer pioneered the use of reverse auctions and now consider them an integral part of their purchasing process. According to a study conducted in 2009 at the University of Arkansas’ Information Technology Research Institute, approximately 25% of all firms and almost 45% of all large firms use Internet-enabled reverse auctions to facilitate procurement process. Research also finds that over $400 billion of goods and services are procured using reverse auctions in the United States alone.
As with most new technology, the use of reverse auctions is sometimes met with resistance, fear and caution. In any business, uncertainty exists when implementing a new process and there is always risk involved. But allowing these emotions to interfere with adopting cutting edge technology can mean lost profits and allows your competitors to gain the edge.
The Commerce Department estimates e-commerce for the third quarter of 2010 at $41 billion, up 13.6 percent from the same period last year. E-commerce is not going away.
The premise of reverse auctions is simple: buyers solicit suppliers for a defined product or service. Suppliers submit specifications and enter their pricing online, rather than on paper. Suppliers then go online and place subsequent lowering bids during a defined period of time.
The reason this process works is this: because of the dynamic environment, suppliers have the opportunity to place subsequent lowering bids and the time-sensitive bidding opportunity calls them to be more efficient in their pricing. Historically, reverse auction procurement saves an average of 10-20% net on everything run through the process.
Consider the evidence from reverse auctions for an internet content filtering solution for a large school district on the West Coast. The school system had estimated the purchase to cost about $795,000. Seven suppliers bid in the reverse auction event. The on-line event produced a total of 546 bids, with first-place changing hands 46 times, between 7 suppliers on the 4 line items. At the conclusion of the bidding event, because of the competitive opportunity, between suppliers to win the business, the school district is enjoying a 46% savings versus budget.
At eBridge we offer a web-based reverse auction solution along with the consulting and advisement to make your reverse auction a successful event. There are several factors to think about before running your first reverse auction event. Below are a few of the high notes when considering this procurement practice:
1. Your first event may take some getting used to: Change is difficult and while the reverse auction process isn’t difficult, it is different and may require some additional effort in understanding how it works.
2. Make sure the item is a good fit for the process: Not everything you and your organization buy is a good fit for the reverse auction process. Many first time users are not aware of the importance in picking the right purchase to make sure it works in the process. Because of this, the auctions don’t yield the results they were promised or hoped for. Items that are not clearly defined or do not allow for a wide range of suppliers do not lend themselves to highly competitive events, thus don’t see the greatest benefits of the reverse auction process.
3. It takes leadership. But remember, change can be difficult and it requires a champion to carry your team members and suppliers through to success. Innovation and risk help you stay ahead of your competition!
Whitney Headlee is the Marketing Director at eBridge Business Solutions. For more information visit www.eBridgeGlobal.com
The Federal Communications Commission is set to meet February 8, 2011 to discuss the vision for Universal Service in America. To ensure this plan is executed the leadership is issuing a series of grants to companies like AT&T so they can create the infrastructure necessary to provide broadband service to under-served areas. According to executives at AT&T, the FCC is likely to use reverse auctions to award funding for areas that cannot get broadband today. Read the full article below and here.
AT&T exec: FCC will recommend 4 Mb/s broadband Universal Service target next month
Carrier would consider applying for funding for unserved areas if terms of “compact” with the commission are right
By Joan Engebretson
The Federal Communications Commission on February 8 is likely to issue “some kind of order—their vision of the way Universal Service will look in the future,” AT&T Senior Vice President Bob Quinn told reporters on a conference call yesterday. “The order will be a vision of the end-state and the principals [the FCC] will use to achieve that end state.”
The initial order then will generate a series of orders and notices of proposed rulemaking over the next several years, Quinn predicted.
To get that process started, Quinn believes the FCC will issue several NPRMs at the February 8 meeting. One will propose modifications to the high-cost Universal Service program, one will involve traffic pumping, and another will address phantom traffic.
Formalizing NBP recommendations
Many concepts that the FCC will put forth in its vision for Universal Service reform will come from the National Broadband Plan, Quinn said. For example, he believes the commission will recommend shifting support from voice to broadband, with a minimum 4 Mb/s downstream- 1 Mb/s upstream bandwidth target.
As recommended in the NBP, AT&T also expects reverse auctions to figure into FCC recommendations at the upcoming meeting. On the call with Quinn, AT&T Vice President of Federal Regulatory Hank Hultquist said that the FCC is likely to use reverse auctions first in awarding funding for areas that cannot get broadband today. As for areas that already have broadband but require ongoing support, Hultquist said he expects the FCC would more likely ask for comment on whether a reverse auction would be feasible.
In President Obama’s recent State of the Union address he reminded Americans of the impact new technology has in keeping American strong and competitive in the global marketplace.
“Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution. What we can do — what America does better than anyone else — is spark the creativity and imagination of our people…In America, innovation doesn’t just change our lives. It is how we make our living.”
Reverse auctions are part of this “economic revolution” created by the use of the Internet for business commerce. In today’s competitive marketplace, organizations must stay on the cutting edge of technological innovation to stay ahead of their competition and remain profitable. According to a recent study by CAPS Research, reverse auction users save between 10-20% on goods and services purchased through process and reduces the purchasing cycle time by as much as 40% over traditional procurement practices.
eBridge recently ran a reverse auction event for a city government. At the conclusion of the event, the buyer stated, “I believe in every organization’s history, a window of time becomes available when you must make seemingly radical change to rise to a higher level of performance. eBridge’s reverse auction process has provided incredible value to our organization and enabled us to do just that. “
Is your organization using reverse auctions?
From Reuters Environmental Forum:
December 16, 2010- The California Public Utilities Commission on Thursday approved a uniquereverse auction market to let renewable energy developers bid on small-scale projects under a program that would generate up to 1,000 megawatts for the state’s three big investor-owned utilities and further spur the solar industry.
Think of it as the eBay approach to ramping up production of carbon-free electricity.
The idea is to avoid problems with so-called feed-in-tariffs that set rates artificially high for renewable energy production. In Spain, for example, high rates spurred a solar building boom that was followed by a crash when a cap on renewable energy production was reached and rates fell.
Under the plan approved by California regulators, the onus would be on developers to calculate the cost of their projects and then offer a bid high enough to generate a profit yet low enough to beat out competitors. The 1,000 megawatts to be developed would be split between Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.
At peak output, 1,000 megawatts would power about 750,000 homes.
“This mechanism would also allow the state to pay developers a price that is sufficient to bring projects online but that does not provide surplus profits at ratepayers’ expense,” utilities commission staff wrote in their original proposal. “Providing a clear and steady long-term investment signal rather than providing a pre-determined price can create a competitive market.”
Dubbed a reverse action mechanism by the utilities commission, the program applies to renewable energy projects that generate up to 20 megawatts of electricity. The hope is to encourage development of small-scale solar power plants that can be built relatively fast and plugged into the grid without major – and expensive – transmission upgrades.
Developers much complete their projects within 18 months and deploy commercially proven technology, according to the decision adopted Thursday.
Adam Browning, executive director of The Vote Solar Initiative, a non-profit San Francisco advocacy group, said the new program fills a gap in California’s renewable energy program.
The state offers incentives for homeowners and businesses to install solar systems that generate up to 1.5 megawatts and utilities have signed contracts with developers to build big projects that will produce hundreds of megawatts each. Lost in the middle were mid-sized projects.
“The decision will help expedite solar development,” said Browning. “This is a way of harnessing the power of distributed generation to deliver a more robust grid and renewable energy development in a much more timely fashion.”
To view the original article, click here.
Check out this recent post from Tim Taft’s blog, The Strategic Sourcer.
I was emailed the following story a few days ago that made me think about how Procurement Services Providers (PSP’s) should be regarded:” A blind boy sat on the steps of a building with a hat by his feet. He held up a sign which said: “I am blind, please help.” There were only a few coins in the hat.
A man was walking by. He took a few coins from his pocket and dropped them into the hat. He then took the sign, turned it around, and wrote some words. He put the sign back so that everyone who walked by would see the new words.
Soon the hat began to fill up. A lot more people were giving money to the blind boy.
That afternoon the man who changed the sign came to see how things were going. The boy recognized his footsteps and asked, “Were you the one who changed my sign this morning? What did you write?”
The man said, “I only wrote the truth. I said what you said but in a different way. I wrote, Today is a beautiful day but I cannot see it.”
The goal of a Procurement Service Provider is not to point out the mistakes of business owners, but to assist them in increasing productivity and profitability by exploring ways of doing it better, faster, and effectively.
PSP’s should be considered an extension of one’s internal procurement department bring to the table areas of expertise and innovative ideas to ensure best prices and high quality products & services are received. Business owners should feel like they are part of the process by being involved in decision making and by encouraging employees to be participate in any sourcing initiatives in place.
Moral of the Story: “When life gives you 100 reasons to cry, show life that you have 1000 reasons to smile.”
Be creative. Be innovative. Think differently and positively
To read more from The Strategic Sorcerer, click here.
Brings Fortune 500 executive experience and innovation to leadership team
Louisville, KY- September 27, 2010– eBridge Business Solutions, a leader in fully managed business solutions and recently named one of American’s fastest growing companies by Inc Magazine for 2010, today announced the formation of the Board of Directors.
Members include James Headlee, Gregg Dedrick, Neil Ramsey and Miguel A. de Jesus. The formation of the board comes after the development of the eBridge brand and explosive growth through their cost reduction strategies including reverse auction solutions and the addition of two new services, managed merchant card processing and web based payroll.
“Forming a Board of Directors with this caliber of seasoned professionals ensures the company will continue to benefit from a diversity of knowledge and opinions. Because of their strong leadership skills, extensive management experience, and proven track records, they make an excellent team to lead eBridge,” said Steve Lewis, President.
About the Board
James Headlee is eBridge’s Chief Executive Officer. He is responsible for overseeing the strategy and direction of the company. Jim leverages 25 years of experience in procurement strategies, negotiation and consulting to bring foresight and depth to the eBridge Board of Directors. Prior to eBridge, as the founder and CEO of Summit Energy, Jim spent 17 years leading the organization’s explosive growth, developing energy solutions for Fortune 500 companies and employing more than 325 staff members across seven international offices.
Gregg Dedrick is co-founder of Whole Strategies, an organizational consulting firm. Prior to Whole Strategies, Gregg was President and Chief Concept Officer at KFC where he led the development of the company’s grilled chicken product. Gregg has held senior executive positions at KFC, Yum Brands, Pepsi-Cola and Pizza Hut and brings nearly 30 years of experience in operations and organizational resource planning.
Neil Ramsey is President and Chief Executive Officer of Ramsey Quantitative Systems, Inc. (RQSI), a Louisville, Kentucky-based private investment firm. Neil is primarily responsible for the leadership of quantitative strategies development and providing strategic direction for RQSI. Prior to forming RQSI, he was a consultant at the Boston Consulting Group where he worked with both domestic and foreign multi-nationals in developing corporate strategies.
Miguel A. de Jesus is a highly accomplished, results-oriented senior-level leader with more than 20 years experience leading business management and development, and global sales and marketing with two Fortune 500 companies. Miguel is a Certified Professional Coach (CPC)- an ICF accredited program from the College of Executive Coaching. He is also an MBA business consultant and executive level business and career coach, dedicated to helping others achieve greater traction in the direction of their dreams.
About eBridge
eBridge Business Solutions, LLC provides fully managed cost reduction strategies including reverse auction procurement, managed merchant card and web based payroll services. eBridge was recently named one of America’s fastest growing companies by Inc Magazine.
Louisville, KY- September 13, 2010- eBridge Business Solutions, a leading provider in outsourced purchasing solutions, today announced the promotion of Stephen Lewis to President. Lewis will be responsible for developing the overall strategic business initiatives and growth strategy for eBridge Business Solutions. He will also be responsible for developing and overseeing eBridge’s marketing and brand strategy and sales force across the country.
Lewis first joined eBridge in February 2010 as Vice President of Sales and Marketing, where he helped develop eBridge’s go-to-market strategy and implementation of additional services including web based payroll and managed merchant card services. Lewis has also laid the foundation for recruiting top tier sales professionals and a rigorous training program.
Stephen has brought leadership and innovation to eBridge,” said James Headlee, CEO, “Because of his background and experience we have added additional services and been able to attract a top tier sales force in the market today.”
“I look forward to continuing to provide value and leadership to eBridge customers and team members in this new role through our robust product offering that delivers measurable results,” said Lewis.
Brings proven record of sales development and training experience
Louisville, KY- September 7, 2010- eBridge Business Solutions, a leading provider in outsourced purchasing solutions, today announced a new Vice President of Sales, Matt McGeary. McGeary joins eBridge in a leadership, training and management role for development and execution for sales efforts.
McGeary is an experienced sales leader, bringing 10 years of sales development and training experience to the eBridge team. McGeary first joined eBridge in March 2010, serving a business development representative in the Chicago area.
“Matt’s background and proven skill set in training and inspiring sales teams make him a vital part of our sales expansion and growth,” said eBridge CEO Jim Headlee.
Prior to eBridge, he served as a district sales manager for Paychex, where he was tasked with increasing revenue production for two districts with a history of under achievement. McGeary has developed multiple strategic selling and training programs that helped produce over 50% revenue growth for his territories.
“The market needs our services,” said McGeary, “And with the proven leadership team and value of our product offering this company is poised for success. I am thrilled about joining eBridge and leading our sales efforts with this group of seasoned professionals.”