An innovative new online approach to securing contracts has saved thousands of pounds of taxpayers’ money. East North East Homes Leeds has made savings of well over £60,000 by using eAuctions – which are essentially electronic auctions in reverse.
ENEHL – one of the three organisations that manage and maintain council housing on behalf of Leeds City Council – has made savings of between 13% and 20% by using the system.
Developed with electronic procurement company Ariba, the system works like online auction site eBay – but in reverse. Companies submit bids for business and try to achieve the most competitive price to win the contract.
eAuctions have the added value of being simple to use, reducing the paper trail and driving the principle of value for money across the organisation.
This new way of working opens the door for ENEHL to undertake pre-approved contractor procurement events that will give ‘real time’ feedback to suppliers on their bids and allows for quick decisions to be made.
Steve Hunt, chief executive of East North East Homes Leeds, said:
"Ensuring we get value for money from public funds is at the heart of all of our procurement activities.
“eAuctions help us deliver significant savings that can then be put to work in delivering services for residents and the community.
“As a public sector body, ENEHL constantly tries to find better and cheaper ways to work – something that has become especially relevant in the current recession.”
