07 August 2006 | Paul Snell

Birmingham City Council has saved £1.7 million by using reverse e-auctions.

The local authority has so far run six pilot e-auctions and calculated savings based on what it had paid previously for the same goods. In one auction the authority cut its office supplies spend by more than £800,000 - from £1.46 million a year to £612,500.

Paul Tilsley, deputy council leader, said: "We're delighted with the outcome of these trial auctions. They have led to significant savings without any adverse effect on the quality of service or supplies we have obtained."

He added that the auctions were a good way of meeting government efficiency savings, and still delivering a good service. "The reverse auctions are the prime example of the innovative methods we are increasingly developing to satisfy these seemingly contradictory objectives," he said.

The council plans to extend the use of e-auctions for future contracts.

SMaug2006