In their 6th event, The City of Lakeland, FL used eBridge’s reverse auction services to procure their annual supply of Portland Cement. The 3 participating supplier placed 23 bids, with 5 first place turnovers and 8 time extensions. The competitive event led to a true market value of 0.01%, and a 14.5% saving on their budgeted value. The City of Lakeland, FL was pleased with the results, and it will quickly go to award.
The City of Frankfort, KY partnered with eBridge to procure their odor control services. The two participating suppliers placed 87 bids. The 52 minute event had 36 time extensions, and 11 first place turnovers. On their 4th event with eBridge, the City of Frankfort, KY saved 15% off their budgeted value, with a true market value of 0.27%. They were pleased with the results of the bid.
Southern California Casino ran a bid for Linen & Terry Laundry Services, with 4 participating suppliers. In the 1 hour and 6 minute event, 234 bids were placed with 59 first place turnovers. The spread between 1st and 2nd place was 1.96%, reaching true market value. This tribal gaming and resort saved 42% off their budgeted spend for a three year contract. This was their 2nd event with eBridge after procurement director’s high recommendation of his experience in the first bid. His enthusiastic recommendation to Gaming Executives reinforced the successful partnership that was developing.
The General Manager commented that we had exceeded his expectation by over 3 times the final savings that he had hoped for. Throughout the bid, the GM just couldn’t believe the competitive environment of the suppliers who wanted to earn their business. The Executive Housekeeper who worked directly with eBridge throughout this event also commented that this tool makes so much sense for all their purchasing needs. He said “The results that we received from using eBridge’s reverse auction process far exceeded our expectations. I believe this to be a very powerful tool in finding the true market value of products/services. With this process, I believe a buyer can really find their maximum savings potential.” – Executive Housekeeper & Environmental Services Manager
In the post follow up with the Executives, they both rated our process, expertise, service and results a 5 star rating or 10 out of 10 scorecard!! They are considering their next purchases for e-Procurement including linens, robes, towel and capital purchases. We look forward to serving the entire team and continuing to be an extension of their procurement strategies!!
eBridge partnered with an Indiana banking agency to run a janitorial services bid for several of their bank locations in Southern Indiana and Kentucky. Prior to the bid, they were using multiple suppliers. Their goal was to find one supplier that could provide services for all locations and also save a little money. We had an overwhelming number of suppliers (17) respond to participate in this bid. After reviewing all the responses, the buyer only approved 6 suppliers to participate in the live bidding event. The bid lasted 1 hour and 2 minutes. During this time, 440 bids were placed with first place turning over 14 times. Based on the low-bid, this Indiana banking agency saved 11.4% on their 3rd event with eBridge. They were pleased with the results and eBridge will partner with them again on future opportunities.
An Arizona University partnered with eBridge, on their 2nd event, for the purchase of 91 Panasonic Projectors. The purchase price included a 4-year factory authorized warranty. Of the 8 participating suppliers, one was not approved through their corporate office to participate in a reverse auction. eBridge offered the option to enter their “one-and-done” bid, which is similar to the traditional paper process of submitting one bid. The supplier did not miss the opportunity to gain the Universities business and participated by entering their final bid. During the 53 minute competitive event, 106 bids were placed with 24 first place turnovers and a spread of 0.13% between 1st and 2nd place, showing true market value.
A state health agency on the East Coast ran a very successful ID card printing bid using eBridge’s reverse auction technology. The agency had used a previous quote to establish a budget of $147,000 for the five year contract. Seven bidders were approved by the agency to compete for the business. At the end of the 25 minute online bidding event, a local vendor won the bid at $107,902. The second place bidder was only $9 behind and third place was less than $1,000 off the lead. This once again proves that an eBridge reverse auction delivers not just a great low price, but competitive alternatives.
Local service contracts are often overlooked as a savings opportunity in healthcare. However, a hospital system in North Carolina was able to cut its water delivery costs by engaging with eBridge to run a reverse auction bid for the contract. Previously, the hospitals had four different vendors and variations in prices. eBridge worked with the procurement office to develop specifications for a bid, identify additional potential suppliers, trained the suppliers on the eBridge website, and hosted the online bid. Seven suppliers were approved by the hospital and the bid was broken into multiple lots. In the end, a local incumbent supplier earned all of the business, and the hospital system consolidated its contracts and lowered its costs.
There is a great article out on Spendmatter.com about the impact of the falling Euro on sourcing, procurement and supply chain strategies. Procurement professionals have to develop strategies to circumvent the damage the failing Euro has done to the economy. Contracts have to be rewritten, new sourcing strategies developed and currency hedging will be vital for a successful 2012 business year.
The current unemployment rate has everyone looking at where the American jobs are going. As companies strive for best value, jobs are outsourced to lower priced manufacturers. Of course this low cost comes at a price, the loss of American jobs. So which should the procurement professional be more concerned with, the lower price or the possible job loss?
This issue has been debated from every angle, politically to economically. Ideally, the procurement professional should be concerned with the best-value sourcing, whether that is local or global. Saving money on manufacturing parts internationally, may allow the company to add jobs locally in another area. There will always be disagreements where outsourcing is concerned, however don’t allow this issue to undermine what a procurement was designed for. Concentrate on finding the best-value sourcing for your company, and incorporate those savings to enhance your company.
eBridge prides itself on being a fully managed reverse auction service provider. We provide strategic sourcing based on the criteria provided by the buyer. We source for local, national, or global suppliers, based on our buyers needs. We average 36 suppliers to a buyer’s bid, and strive to reach “true market value” on every bid.
The City of North Miami Beach, FL partnered with eBridge to acquire their Norwood WTP Lime Sludge Removal Services. There were 3 participating suppliers with 95 bids placed, creating a competitive bidding environment. The first place bid was reduced 20 times over the 40 minute bid. The bid reached true market value with a spread of 0.57% between the 1st and 2nd place suppliers! The City of North Miami Beach, FL saved 18% on their budgeted value.