The Federal Bureau of Prisons saved $484,000 on a roofing project using eBridge’s reverse auction services. The 15% savings on budget came from a competitive auction among 4 participating suppliers. There were a total of 129 bids with 101 extensions before the final close. In the end the 16 first place turnovers lead to a spread of only 0.0041% between first and second place, showing that the Bureau achieved true market value.
eBridge partnered with the State of South Carolina to purchase light bulbs, lamps, and ballasts for the Materials Management Office. eBridge helped them to save over 4% on the total purchase which equated to over $100,000 in savings. The auction lasted for 61 minutes including 56 lead turnovers and 67 bids placed. After the 3 participating suppliers finished bidding, the spread between first and second was only 0.0051% showing that true market value was achieved.
A South Carolina School District saved over $12,000 on new musical instruments with the help of eBridge’s reverse auction platform. The auction had over 130 bids in just 40 minutes including 95 extensions. There was heated competition among the 3 participating suppliers for first place, which lead to 58 first place turnovers.
A school district in Hawaii was looking to procure new furniture for its classrooms and library. The district partnered with eBridge to find the right supplier at a great price. eBridge helped the schools save a total 36% on furniture using its reverse auction process. The auction consisting of 6 suppliers and had 134 bids, including 23 first place turnovers. The final spread between first and second place bidders was only 0.0004% which let the school know they got true market value.
eBridge partnered with a University Hospital to renew their pest control contract. The auction had 9 participating suppliers, including their incumbent, who were very competitive. During the auction there were over 700 bids, 318 time extensions, 19 first place bid turnovers, and the final spread between the first and second place bidders was only 0.0039%. eBridge helped the Hospital save over $230,000 and beat their budget by 46%.
A Kentucky Care Center partnered with eBridge to purchase new windows using the reverse auction process. The auction had 13 participating suppliers and last for a toal of 55 minutes. During the auction there were 65 bids placed leading to 9 first place turnovers, 63 bidding time extensions, and a spread between first and second place of only 0.0028%. In the end the Care Center ended up saving over $24,000 and beat their budget by 27%.
A North Carolina university hospital used eBridge’s reverse auction platform to purchase a 3 year landscaping contract. The auction had 2 participating suppliers competing for the contract. The auction lasted 16 minutes and had a total of 13 bids placed. Thanks to the reverse auction event, the hospital was able save a total of $360,000 on their budget for a total savings of 25%.
Interesting read from Supply Chain Review about the rising interest in demand for procurement solutions- including reverse auctions.
Large enterprises are back in the market driving big deals, while mid-market firms are implementing sophisticated procurement systems for the first time.
Cloud computing is behind most of the positive trends in this market, including increased adoption, improved collaboration and new forms of application functionality.
I expect 2011 will be a strong year for the procurement systems market.
This Hospital’s first auction with eBridge was a huge success! 5 Suppliers placed 262 bids on multiple line items consisting of computers, tablets, and peripherals. This 47 minute bid had 40 first place turnovers and the lowest spread between 1st and 2nd place at 0.01%! The hospital logged in over $90,000 in savings for this contract.
eBridge collaborated with DePauw University for the purchase of fitness equipment, for an addition to their main athletic facility. Our Specifications Development Team used a 16-point checklist to review the equipment list and specifications provided by DePauw. The team then created a draft document to be reviewed and approved by DePauw.
Since there were over 100 items to be purchased, it was determined the items would be separated by lot and participating suppliers must be able to provide all equipment in a lot in order to be approved to bid.
The bid opportunity was initially released to 46 suppliers. Eight of the 46 suppliers submitted a response. eBridge then compiled a Response Summary detailing all information submitted, information omitted, and items each supplier would bid, along with possible item substitutions.
DePauw approved all 8 suppliers to participate in the live reverse auction. Suppliers received a one-on-one tutorial about the eBridge online process, as well as, an Excel spreadsheet created to allow them to modify their unit pricing while giving an overall total for the lot and quantities. This spreadsheet was sent to DePauw once the live reverse auction closed.
The reverse auction generated 121 lowering bids from the 8 suppliers and lasted 29 minutes. There were two first-place turnovers and 33 extensions. The final spread between the first and second place suppliers was .0153%.
As a value added service, eBridge provided a detailed report for the reverse auction in a FTP file for easy accessibility. The report contained all pricing information submitted during the reverse auction, including pricing and literature for substituted items.
After review and discussion of the results, DePauw University awarded the bid to four suppliers based on “best value”.
Quote from Dick Shuck, Director of Business Services:
“We found this entire process to be quite interesting, and would like to compliment you on all of the assistance provided, and your professionalism. It has been a pleasure working with the eBridge team and we look forward to future opportunities to utilize eBridge again.”