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Richardson ISD Saves Tax Dollars Through Sorcity Ebidding

May 21, 2008… When you think of the millions of dollars that Richardson Independent School District spends on purchases each year, $473,000 does not seem like a large amount, but when you realize that this is 41% in pure savings, on just one purchase, you can see how Ebidding can save millions of tax dollars a year if it is applied to a meaningful portion of a school district or city’s budget.

Rose Kohut, Director of Purchasing for RISD, is no stranger to Ebidding, as she had exposure to the Sorcity.com process at Dallas Independent School District in 2003, where it saved an average of 16% on purchases in their initial pilot. Last year Rose brought Ebidding to RISD and saved 19% on her first purchase through Sorcity. With results like this she understands why the State of Texas legislated this Ebidding (reverse auction) method many years ago, which is also recognized by the Institute for Supply Management and National Institute for Government Purchasing.

“Ebidding through Sorcity,” says Rose Kohut, “allows a buyer to advance their sourcing efforts to save time and a great deal of money. We knew the Army Air Force Exchange Service (AAFES), the U. S. Air Force, and many cities and school districts had already saved millions of dollars through Sorcity, so we signed up and were able to begin Ebidding immediately. We just access their Center of Excellence, who runs the process for us, and then we make the final award decision. Our price simply gets bid down. Our requirements remain the same so there are no quality issues.”

“Richardson ISD has averaged 34% more with Sorcity Ebidding than through the traditional bid process and we pay nothing to access Sorcity. Even though the occasional supplier will try and buck the process, most will be honorable and participate. We have identified many other purchases to Ebid through Sorcity,” says Rose.

Wes Guillemaud, CEO of Sorcity.com, Inc. says “We are not surprised by these savings since our clients have been averaging between 12-24% since 1999. We select our clients carefully because there is no investment, software implementation, or cost for the buyer, so we assume the risk and ensure client success. Executive-level commitment is one of our few requirements for new clients, which is not hard to get once they understand that $20-50 million in savings is realistic and trumps other priorities.”

How much total savings will RISD save with Sorcity? “That answer will be determined by leaders like Rose Kohut as they decide to allow suppliers to openly compete through Sorcity, instead of bidding in the traditional manner. We are just pleased to contribute to reducing the tax burden on our great nation,” says Guillemaud. “Any client, public or private sector, can save millions of dollars.

Sorcity.com is not a hosted or software bid tool; it is a fully managed Center of Excellence that removes the Ebidding burden from the buyer and seller. Sorcity has been recognized by both parties as a very ethical and effective Ebidding provider who reduces the sourcing and sales cycle cost. This may account for why they have been so effective across all industries, Ebidding almost all of the goods and services an organization needs to buy.

“For those who have an economic incentive to reduce costs, Sorcity is a self-evident bid method.  For those who do not, this is simply the right thing to do; after all, there is no reason not to try it,” says Rose Kohut.
 


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