Spend Analysis Can Help Local Government Procurement Achieve Significant Cost Savings

It’s no secret that during the pandemic local governments saw spend soar as they struggled to keep up with the swift demand for personal protective equipment (PPE) and to pay out higher levels of unemployment benefits. In lockstep with the spend increases, government revenue coffers shrunk due to significant decreases in road tolls and local wage taxes with more individuals working from home. When you add up the numbers, the simple truth is that state and local governments have less money to stretch farther to meet constituent needs.

To make matters worse, the dynamics of our modern economy have only exacerbated the issue. Across the country, new spend cap mandates in place are asking some governments to cut costs by up to 15% in order to achieve a balanced budget. This is forcing a lot of officials to evaluate cutting spend on vital programs that provide much needed aid, such as unemployment assistance and welfare benefits. If governments are unable to meet budget requirements, they often must enact labor reduction cuts to reduce spend.

Taking into consideration that neither of these are truly viable options, governments are instead placing more scrutiny on optimizing procurement spend. By addressing procurement first, governments across the country can realize immediate efficiencies and cost savings that can be enacted without having to cut into social programs and enacting job cuts to support communities.

The first recommended step is to benchmark. This exercise helps governments to understand exactly where spend is focused and whether they are paying a fair price for goods and services in comparison to what others are paying. Next step is to rank spend categories to determine whether spending priorities align with budgets. This process is intensive yes, however taking the necessary time to perform this detailed analysis creates transparency and has the potential to uncover cost savings opportunities.

Following this initial analysis, governments should then target optimization opportunities covering their current spend categories. Our research has shown that most local governments have the opportunity to save approximately 20 – 30% across various spend categories mostly because they have not yet taken the needed steps to ensure they are receiving a fair and equitable price for the goods and services they purchase. One way that governments can accelerate cost savings is through participation in a reverse auction. Reverse auctions are events that allow governments to share categories and quantities of goods and services they are interested in purchasing with a group of potential Suppliers. Then, in a real-time auctioning event, governments can watch Suppliers bid on their contracts and adjust their bids to maintain a competitive position in relation to other participating suppliers. At the end of the reverse auction, governments can then select a Supplier via a competitive price ranking system, understanding that cost is a main driver but at times not the only consideration in final selection.

When optimizing government spend, what becomes critical is the ability to compile and review data. This may require a technology investment to ensure the proper processes and procedures are in place, but it’s a small price to pay for a window into data intelligence that can profoundly impact the ability to achieve true cost savings and efficiencies. It also positions governments to be better prepared for future supply chain hiccups by providing them the ability to quickly understand historical spend and identify future adjustable categories for re-allocation of funds to more important initiatives.

EasiBuy COO Scott Patterson recently contributed an article to Government Technology Insider discussing government procurement and how to achieve true and sustainable cost savings through technology, analysis, and benchmarking. His article, “To Achieve Cost Savings, Procurement and Spend Analysis are Key” was recently published and is an excellent read for any government procurement official seeking to realize a more efficient and streamlined approach to purchasing strategies.

How can we help? For more information on spend analysis, benchmarking, reverse auctions, and achieving cost procurement cost savings and efficiencies please click here and we will be in touch!


Attending the 2023 CAPPO show? Stop by Booth #413 and Meet the EasiBuy Team!

EasiBuy will be attending the California Association of Public Procurement Professionals (CAPPO) Forum January 8 – 11, 2023 in Monterrey, CA and we are proud to be a Gold+ sponsor! We look forward to seeing you.

There are two ways you can interact with the EasiBuy Team to learn more about how we specialize in cooperative sourcing and managed procurement services for state and local government agencies.

#1 – Stop by Booth #413 to see a brief demo of our innovative cooperative sourcing solution –  even better, please plan to visit our Booth on January 10th at 10 am or 12 noon, and see the reverse auction process live and in-person! You heard us correctly. On January 10th at 10am and at 12 noon, Scott Patterson, Clay Sukys, and Dave DiMeo will be facilitating a LIVE reverse auction directly from the EasiBuy Booth – anyone that is interested to see how this process works has the opportunity to see it unfold in real-time. Again, this is not a demo or a pilot run – we will be showcasing our solution so you can get a firsthand look at how a reverse auction works!

#2 – Attend our educational break-out panel discussion on Monday January 9 from 2:45pm – 4:00pm in Marriott – San Carlos I! EasiBuy’s VP of Sales Scott Patterson will be hosting a panel discussion with the City of LA titled “Reverse Auction as a Procurement Tool.” The session will teach you how a reverse auction works, highlight specific features and benefits for government agencies, and provide examples of how The City of LA has leveraged this process to secure significant cost savings.

By the way….did you know that EasiBuy has managed in excess of $4.2B through the reviews auction process and have saved on average 22% across a broad range of categories? Many of our clients are utilizing the reverse auction process to mitigate price increases and confirm that they are paying true market value for the goods and services.

Looking forward to seeing you at CAPPO 2023 in January!

Attending the NIGP Forum 2022? It’s a Great Opportunity to Get Acquainted with EasiBuy!

The National Institute of Government Procurement’s (NIGP) annual trade show kicks off on Saturday August 20 at the Boston Convention Center, and the EasiBuy Team could not be more excited to meet and network with government procurement professionals and thought leaders from around the country. The geopolitical, environmental, labor, and transportation problems that have directly impacted the global supply chain the last couple of years have forced procurement professionals to seek efficiencies, work-arounds, new innovations, and alternative paths just to fulfill what were once considered basic, simple orders.  It’s small wonder that the team at NIGP decided to build this year’s conference curriculum around the theme “The innovations reshaping our future.”

At EasiBuy, we are laser focused on helping procurement professionals around the world through our cooperative sourcing and managed procurement services for state and local government agencies. Our managed reverse auction service provides unparalleled transparency, saves money, and establishes efficiencies as we work hand-in-hand with your organization to execute a multi-phase procurement process incorporating unique policies and procedures. The EasiBuy Team offers four key components to our approach:

  • Market Research: We identify the greatest category opportunities by analyzing market and spend data.
  • Focus Sourcing: We then identify and encourage suppliers to respond to the buyer’s sourcing event/bid.
  • Dynamic Pricing Event: Buyers then watch in real-time as qualified suppliers lower their price in real time.
  • Bid Tabulations/Reports: The EasiBuy Team provides a detailed post-event analysis providing both itemized and summarized results.

Key Benefits of our services include:

  • Speed to Savings: Face-paced, competitive environment to drive down price – resulting in a 22% average savings across all categories. Immediate bid results and tabulations are available allowing for speed to award and contracting.
  • Sealed Bid Environment: EasiBuy incorporates and follows your unique policies and procedures. We focus source suppliers, create greater visibility, and interact with suppliers maintaining the sealed bid process for government agencies.
  • Sustainable Value: We engage in a multiphase process – buying agency qualified suppliers to move to the pricing event. The reverse auction format provides unparalleled transparency and efficiency in a rapid-fire downward price negotiation.

There are two ways to interact with the EasiBuy Team at this weekend’s NIGP Forum 2022:

  1. Schedule a brief demo of our innovative cooperative sourcing solution and/or chat with us about our managed reverse auction services for state and local government agencies that accelerates value for public procurement professionals. Did you know that EasiBuy has managed in excess of $4.2B through the reviews auction process and have saved on average 22% across a broad range of categories? Many of our clients are utilizing the reverse auction process to mitigate price increases and confirm that they are paying true market value for the goods and services. Click here to schedule a Demo at the show, or stop by and see us at Booth #625 in The Exhibit Hall at your convenience!
  2. Attend our education session on Monday August 22nd at 1pm in The Innovation Theater! EasiBuy Co-Founder Ben Koberna will be presenting an educational session called “Procurement Mind Training” where he will be discussing how to develop the leadership skills necessary to navigate our procurement modernization journey. Please mark your calendars and join us!

Looking forward to seeing you at NIGP Forum 2022 in Boston on August 20 – 24!