City of Chesapeake, VA, saves 28.5 Percent
on Annual Vehicle Tire Contract using Orbis Online's Dynamic Pricing
Reverse auction yields tremendous savings
Vendors benefit from competition created by real-time interactive bidding
San Antonio, Texas - June 17, 2002 - The City of Chesapeake, Virginia
(Chesapeake), recently made a significant advance in its use of electronic
commerce and saved its taxpayers close to 30 percent on its annual contract
for motor pool vehicle tires. Chesapeake joined an ever-growing number
of municipalities that use reverse auctioning, via the Internet, to
achieve lower prices on the goods and services they purchase. Chesapeake
purchases tires for police vehicles, regular-duty automobiles, and both
light and heavy-duty trucks. Using traditional sealed bids to acquire
pricing, Chesapeake's tire contract last year was valued at $325,000.
This year, using Orbis Online's reverse auction platform, Chesapeake
saved $99,541, or 28.5 percent off that price. York County and the City
of Chesapeake School Bus Garage will also utilize the favorable terms
generated by Orbis Online's dynamic pricing, extending the benefits
of a single procurement event further.
Major Savings on a Single Contract
"We're very happy with the results of our first reverse auction.
Using Orbis' services we will save almost $100,000 this year-just on
tires," said Patricia Barber, procurement specialist with the City
of Chesapeake. "Orbis had approached us last year. It took us some
time to decide to try a reverse auction, though we were so impressed
with their offering we put a link to Orbis on our City website. Now
that we have completed an event and it went so well, we're actively
planning our next venture into dynamic pricing."
"Our customers have one principal goal:" explained Dr. James
Strader, chief executive officer of Orbis Online, "to get the appropriate
product or service at the best price at the right time. We offer extensive
knowledge and expertise in dynamic pricing techniques and an easy-to-use
technological tool suite. Orbis ensures a fair, transparent, competitive
environment for both buyers and suppliers."
Active Vendor Bidding
Extending Chesapeake's ability to find new suppliers, Orbis Online contacted
tire vendors nationwide to participate in the event. Competition among
participating suppliers turned a scheduled 30-minute event into a 65-minute
competitive event in which seven five-minute extensions took place.
The Orbis Online dynamic pricing platform promotes competition to the
fullest extent possible by including time extensions. A bid placed in
the last five minutes of an auction triggers a 5-minute extension that
prevents last-second bidding and keeps all participants on an even playing
Reverse Auctions Offer Efficiency and Savings
The benefits of reverse auctions are not exclusive to the buyer in a
dynamic pricing event. Vendors also benefit, because they spend less
time preparing extensive paper documents for a static one-chance bid.
Vendors that participate in reverse auctions benefit by seeing their
competitors' bids and having the opportunity to submit counter offers
to better compete in a transparent market environment, significantly
improving their chances to secure the business.
About Orbis Online, Inc.
Orbis Online, Inc., headquartered in San Antonio, Texas, offers patent-pending
dynamic competitive pricing tools that significantly reduce the cost
of products and services versus historical procurement methods. Orbis
transforms the traditional competitive bidding process into more powerful
events that are live, online and worldwide. Orbis' value proposition
is unique. The superior functionality of the solution includes all the
benefits customers can normally experience only by purchasing or developing
custom systems and requires no up-front costs or software installation.
For more information about Orbis Online, Inc., please visit our website
at www.OrbisOnline.com, or call (210) 576-7600. Demonstrations of Orbis
Online's unique auction platforms are available at the website: www.wsdemo.com
or can be facilitated by contacting Orbis Online directly.
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