10/27/04: The Bombay Company Saves Over 27% Using Sorcity Reverse-Auction Service
Purchasing department helps improve company profitability
DALLAS, TX - October 27, 2004...
Bombay Company, designer and marketer of furniture and
home accessories through catalogs, the Internet, and more than 400 stores
worldwide, has saved over 27% on expense-item purchases by using the Sorcity.com
Reverse-Auction Internet service.
Recognized for the past six years as a leading provider of Reverse-Auction
services, Sorcity helps Supply Managers accelerate many purchasing steps and
virtually eliminates the time spent on negotiating a lower price, by allowing
suppliers to compete for this lower cost business in a downward auction.
Kay McCarthy, C.P.M. and Director of Purchasing for The Bombay Company
,who led the charge with this new sourcing method says, "We have been
using Sorcity for several years because it doesn't come with the baggage of
software or consulting solutions. It is a very easy service that includes
a number of professional services to ensure we get the lowest price for the
goods and services we buy, without disrupting our internal processes. And
there's no cost to us."
"Another unexpected advantage we discovered is that Sorcity can save us
several days on each purchase sourced. It also solved a major concern in
that we were able to maintain several of our current supplier relationships but
with a lower price," says McCarthy.
From a financial standpoint, Reverse-Auctions cut the price a company pays for many
goods and services, which can translate into millions of dollars. If that
company can realize a large enough savings, it could have a direct impact on the
prices they ultimately charge their customers. In the case of Bombay, this could
reflect even better prices to consumers, which could increase Christmas sales.
"Bombay has used Reverse-Auctions to source diverse products like air mattresses,
adhesive labels, warehouse strapping tape and carton tape." McCarthy
continues, "The most impressive savings thus far have resulted from POS
journal tape and Stretch film but we now have larger, multi-year purchases
planned for Reverse-Actions to target savings on corrugated cartons, office
supplies, light bulbs, store fixtures, visual props, mill work and possibly even
Wes Guillemaud, CEO of Sorcity.com says, "Our goal is to deliver 10-20%
savings across our clients entire spend without asking them to invest any time
or money. Our philosophy is pretty simple: Make it easy and highly
rewarding for Supply Managers to use our service, and we will commit to making
them more successful and valuable. It's an easy way for purchasing
directors and CFOs to shine."
Web Sites: Bombay: www.bombaycompany.com Sorcity: www.sorcity.com