Reverse Auctions Help Agencies Save Money

Wednesday, July 6, 2011

Reverse Auctions Help Agencies Save Money

In a recent article from governing.com, author Jessica Mulholland describes the remarkable savings achieved by government agencies and private companies utilizing reverse auction technology. The prime example from the article, Maricopa County, Arizona, discovered reverse auction when they became tired of paying a premium price for a commodity that was being sold to them at far above market value. Once they learned about reverse auction and the savings it creates, they began running any purchase through it that they could. As a result, they uncovered dozens of purchases on which their margins were greatly decreased for their bottom line – saving millions of dollars on everyday items such as flour and peanut butter, but even more specific items as well.

Mulholland also points out that in reverse auction quality is still factored in, as the buyer is not restricted to awarding to the lowest bid – they have the option of awarding to 2nd, 3rd, even 4th placed suppliers if they feel that bid is the highest in value or quality to their company.

eBridge offers the same incredible results discussed in this article – all at no direct price to our clients. There is truly no substitute for a professional team like ours at eBridge that runs and fully-manages large purchasing transactions through reverse auction from A to Z.