Total sales in 2015 are expected to reach $811 million.
Procurement professionals can set up reverse auctions to let suppliers bid on their purchasing contracts for a basic commodity product or for more complex multi-line orders.
A new procurement service from FedBid Inc. and Electronic Auction Service Inc. lets business buyers set up reverse auctions for a broad range of contracts.
In a reverse auction, a purchasing company posts information online on what it wants to buy and the desired price. Suppliers can then bid on the contact, providing their bid price and other information, such as available inventory volume and delivery dates.
FedBid caters to government agencies, educational and health care organizations that buy products like office supplies, computer hardware, hospital supplies and business services from businesses through reverse auctions on FedBid.com. More than 10,000 buyers used the FedBid.com marketplace, including the U.S. Department of Defense and the Detroit Public Schools, and 70,000 sellers.
EASi specializes in helping companies manage relatively complex, multi-product procurement projects for clients including retailers Guitar Center, Gap Inc. and Joann Stores Inc.; health care organizations including the Cook County Health and Hospital System in Chicago, and the cities of Chicago, Philadelphia and Los Angeles. In April, the Department of Purchasing, City of Los Angeles, said it procured office supplies from multiple suppliers by using a reverse auction with EASi and cut its final bill to $6.8 million from an initial estimate of $8.4 million.
Under the new agreement between FedBid and EASi, buyers can log onto either FedBid.com or EASi’s eAuctionservices.com and post reverse auctions using the supplier networks and software services of either company.
FedBid or EASi each earn revenue through administrative fees added to the invoices sellers send to buyers.
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