6/30/09: Eliminate Budget
Shortfalls by Buying Smarter
In the barrage of layoffs, pay
reductions and Chapter 11’s, it is relieving to see some organizations solve
budget shortfalls in a more positive, and less destructive way, by using the
Ebid method to shave an additional 12-24% off their
For a city the size of Dallas, the Dallas school district, or states such as
California or Michigan, this equals $50-$100 million in annualized savings. All
organizations have access to Ebidding but some
claim cost is the reason they have not begun using it. With an
Ebid service like Sorcity.com buyers pay no fee and
access is immediate, so these savings are easier to reach.
AAFES, the U.S. Air Force, and many other public and private sector
organizations have utilized the Sorcity.com Ebid
service to gain big price reductions on many goods and services, resulting in
savings. This is multiplied when an organization uses Ebidding
for the majority of their purchases.
The Ebid method is rather simple; instead of the
buyer going through painstaking negotiations, bidders openly compete in an
Internet forum against each other, bidding lower and lower prices real-time as
you watch your price drop. The buyer saves a great deal of time, has access to
many more suppliers (with Sorcity), and retains control over the purchase, so
quality and service-levels don’t change.
Some organizations have watched on the sidelines but are now getting more
pressure to cut costs. Ebids (AKA reverse auction,
eRFQ and eRA) can benefit them also, if they use it, as evidenced by success
stories presented at ISM and NIGP and 10-years of benchmarked lower prices.
A Dallas area school district
and several surrounding cities have used Sorcity and saved millions of dollars.
One averaged 16.2%, another 25% and another over 30% below their existing
prices. Anything from office supplies and packaging materials to computers and
capital purchases are Ebid. Why be chained to
This is the answer CEO’s and
CFO’s have been looking for. Wes Guillemaud, CEO of Sorcity, says; “Our biggest
challenge is informing an organization they can save millions of dollars more,
in less time, at no cost to them, and then getting them to believe it. It sounds
too good to be true until you try it.”