Category: Commodities
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.
A water district partnered with eBridge to purchase three different chemicals for their water treatment plant via reverse auction. Originally, the bid was for a two year contract. However, the water district and eBridge collaborated and determine the best strategic approach would be to bid the project for just one year because chemical pricing was trending higher than average.
The three chemicals were bid per pound. Eight suppliers placed a total of 188 bids on the three line items during the bid. First place changed hands 35 times.
At the conclusion of the event, the buyer saved 10% versus their previous contract, with one chemical’s pricing coming in higher than expected. Due to the volatile nature of chemical prices, reverse auctions are ideal for this type of commodity, giving the buyer confidence they are buying at market.
A medium-sized city recently partnered with eBridge to purchase water and waste water treatment chemicals. The chemicals included: chlorine gas, liquid caustic soda, liquid alum, hydrofluosilicic acid, aqua ammonia, activated carbon, polyaluminum chloride, potassium permanganate, chlorine gas, sulfur dioxide, HTH granular and HT 3″ chemicals.
The 13 suppliers placed a total of 319 bids on the 12 chemicals. First place changed hands a total of 50 times throughout the one hour, 18 minute bid. At the conclusion of the event the lowest spread between 1st and 2nd was 0.01%, indicating true market value had been found. The overall budget was $172,000 with the final low bids totaling $169,022.
A Kentucky utility recently partnered with eBridge to purchase water treatment chemicals. Thirteen suppliers participated in the bid for a variety of chemicals.
Throughout the course of the reverse auction bidding event, 640 bids were placed and first place changed hands 105 times, showing the suppliers were actively competing for the business.
The estimated savings on the thirteen chemicals at the conclusion of the event was 11% versus least year’s budget.
A Midwestern city partnered with eBridge to purchase water treatment chemicals a total of 12 suppliers participated in the event, placing a total of 231 consecutive bids.
In a reverse auction, suppliers have the opportunity to place subsequent lowering bids for a product or service. In this case, several different water treatment chemicals. First place changed hands 29 times, with the clock extending 94 times.
Because the price of chemicals is volatile, it’s important to note that first and second place suppliers were less than .2% apart, indicating true market value had been achieved for the purchase.
The city was very pleased with the bid and will run several more items through the process in the future.
A Midwestern city partnered with eBridge to purchase water treatment chemicals a total of 12 suppliers participated in the event, placing a total of 231 consecutive bids.
In a reverse aucution, suppliers have the opportunity to place subsequent lowering bids for a product or service. In this case, several different water treatment chemicals. First place changed hands 29 times, with the clock extending 94 times.
Because the price of chemicals is volatile, it’s important to note that first and second place suppliers were less than .2% apart, indicating true market value had been achieved for the purchase.
The city was very pleased with the bid and will run several more items through the process in the future.
The Associated Press
October 17, 2010
DANVILLE, Ky. — A central Kentucky city has turned to online auctions to buy supplies such as road salt, water treatment chemicals and a new city fire truck.
Danville city commissioners and an official with the company running the sales say the method appears to be saving the city money.
Jock Kinnett, a representative of Louisville-based eBridge, told the Danville Advocate-Messenger that the city saved 16 percent on chemical purchases over the previous year.
The company organizes auctions for public procurement in a timed setting, much the same way an eBay auction is operated.
Kinnett said the company collects a percentage of the sale from the seller after the city has paid the vendor.
Read more: http://www.kentucky.com/2010/10/17/1483627/ky-city-turns-to-online-auctions.html#ixzz12iQDrDYo