Reverse Auction Strategies

The eBridge Reverse Auction Strategies Blog provides readers with news and information about how buyers and suppliers nationwide are partnering with eBridge to achieve more effective purchasing through reverse auction services
April 28, 2015 • 9:12am in Uncategorized 0

A Kentucky Hospital gets a Computer Upgrade, and a Great Price

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.

April 13, 2015 • 2:36pm in Furniture, Fixtures and Equipment, Higher Education, University 0

DePauw University – Fitness Equipment

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.”

 

April 6, 2015 • 3:09pm in Hospitality, Office Supplies 0

National Hotel Chain Saves 49% on Office Supplies

A national hotel chain banked big savings on office supplies through their 2nd bid with eBridge.  Four suppliers participated, making for an exciting bid with 78 placed bids and 31 first place turnovers declaring the lowest spread between 1st and 2nd place at 0.41%.  The hotel was very happy with the results and cut their budget nearly in half by saving 49%!

February 26, 2015 • 1:41pm in Uncategorized 0

Corrections Institute in Texas Cleans up their Facility with Big Savings

This Corrections Institute was very pleased with the results of a competitive Janitorial Services bid that had 3 suppliers scrubbing out 45 first place turnovers and a final spread of 1.18% between 1st and 2nd place.  After being satisfied with a display of true market value, the Institute was even happier when their total savings added up to $788,500, and a yearly savings of 36%!

August 22, 2014 • 12:17pm in County Government, Event Summaries, Fuel, Uncategorized 0

Metropolitan Washington COG uses eBridge to Auction 12 Million Gallons of Fuel

In Montgomery County, Maryland’s second event with eBridge, eight suppliers competed on an annual contract for unleaded gasoline and E85 with estimated annual usage of over 12 million gallons.  For this reverse auction, Montgomery County was the lead agency in establishing the fuel contract for the Metropolitan Washington Council of Governments.  Over 20 public jurisdictions and entities from Montgomery County, Maryland, Metropolitan Virginia, Washington, D.C., and Anne Arundel County participated in the bid, which made this a very high profile event.

The County sought to establish pricing for will-call and automatic delivery of regular unleaded, midgrade unleaded, premium unleaded gasoline and E85 for the participating jurisdictions with three different options for delivery: FOB Terminal Point, Truck Transport, and Tank Wagon.  All the different options resulted in over 80 line items for this bid.  With the volatility of the fuel market, eBridge’s dynamic bidding platform was the best way for the participants to ensure that they arrived at true market value for the contract.

The way that eBridge approaches fuel bids of this nature is to have suppliers offer pricing that is tied to a particular OPIS (Oil Price Information Service) average, which indicates the market price based upon a specified index.  The suppliers then can bid above or below the OPIS index-based pricing.

The real-time competition among the eight participants generated 73 time extensions over the course of the auction.  The best measurement of success was the close competition among the suppliers.  On certain line items, the spread between first and second place was a mere 0.01 which indicates that true market value has been achieved, and in this case, multiple suppliers were the lowest priced for different geographic zones and/or fuel types.

August 18, 2014 • 10:30am in Uncategorized 0

SC School District Devours $500K in Savings Using eBridge for Food RFP

A school district serving 24,000 students in South Carolina recently ran their school food request for proposal (RFP) through eBridge and achieved estimated annual savings of 10% or $500,000.  The incumbent food distributor was awarded the contract.  This was an extremely complex RFP because there was far more involved with buying food for children than just lowering the cost.  The school district took time to identify acceptable brands for every product category in the RFP specifications.  eBridge worked closely with the district to build an RFP that took quality standards into account, while building a bidding format that encouraged competition among the vendors.  A reverse auction was conducted and the vendors lowered their bids a total of 34 times to compete for the district’s $5,000,000 annual contract.

August 8, 2014 • 10:32am in Uncategorized 0

South Carolina Correctional Facility Saves 41% With Their 50th eBridge Auction

Congratulations to a Correctional Facility in South Carolina for running their 50th auction with eBridge!  This auction, for sports bras, netted them a tremendous 41% savings over a five year contract.  Three suppliers were approved to participate and generated 112 bids with 74 first place turnovers.  They are very happy with the results. eBridge is proud to be a partner and we are looking forward to the next 50!

August 7, 2014 • 8:56am in Uncategorized 0

Texas School District Collects 11% Savings on Trash & Recycling Reverse Auction

In their 3rd auction with eBridge, a School District in Texas ran a three year Trash and Recycling Bid.  Four suppliers were approved to participate in the bid and placed a total of 425 bids.  This resulted in a dramatic 11.4% savings in the overall contract.  “Everyone was very impressed with the whole operation!” said a Senior Buyer.  The School District was extremely pleased with both the results as well as their overall savings.

August 5, 2014 • 9:08am in Uncategorized 0

SC School Saves $500k using eBridge for Food Reverse Auction

A school district serving 24,000 students in South Carolina recently ran their school food request for proposal (RFP) through eBridge and achieved estimated annual savings of 10% or $500,000 annually.  The incumbent vendor was awarded the contract.  This was an extremely complex RFP because there is far more involved with buying food for children than just getting a low price.  The school district took time to identify acceptable brands for every product category in the RFP specifications.  eBridge worked closely with the district to build an RFP that took quality standards into account, while building a bidding format that encouraged competition among the vendors.  A reverse auction was conducted and the vendors lowered their prices a total of 34 times to compete for the district’s $5,000,000 annual contract.

December 9, 2013 • 4:59pm in eBridge, Event Summaries, Furniture, Fixtures and Equipment, Higher Education, University 0

Students Will Rest Easy!!

A private University recently partnered with eBridge on bid number 7.  The bid was for all required furnishings for their new dormitory.  The supplier list was originally restricted but the University was pleased to include many of the additional companies eBridge brought to the process.  The simple response process allowed for a tight turnaround, which was a must since all furniture has to be ordered, manufactured and delivered for an April 2014 install date.  Six companies were quickly identified and approved to participate.  The bid event was extremely competitive bringing 362 bids with 38 first-place turnovers.  The low bid price came in approximately 33% below the anticipated budget.  The University is now reviewing the spec responses, bid pricing and furniture samples to determine which company offers the best overall value.