Improve Your Company’s Valuation

with eAuctions

Improve customer satisfaction

Drive new revenue

Unlock working capital

Strengthen your company’s brand

eAuctions are more than a simple tool for securing savings and processes efficiencies. eAuctions...

eAuctions can also have a significant, direct and measurable impact on your company’s overall valuation, with the right utilization.

Here are 3 ways to employ eAuctions in an effort to boost your company’s valuation.

1 Focus on Sourcing Both Operational (OpEx) and Capital (CapEx) Expenditures

STEP

+OpEx CapEx$ $

More importantly, e-sourcing CapEx gives you complete control over your business’s most significant purchases, helping to ensure that your procurement decision is the

best one for the organization.

Intesource data shows that e-sourcing CapEx can lead to cost reductions of 50% or more — and in many cases, a single CapEx e-sourcing project can secure millions of dollars in savings.

Both OpEx and CapEx have a direct — and significant — impact on overall profitability. Bringing both OpEx and CapEx under the e-sourcing umbrella can drive the sort of bottom line savings that increase stakeholder value.

CapExOpEx

50%COSTREDUCTIONS

A strong and knowledgeable sourcing partner can provide the extra experience and resources to effectively run a

CapEx e-sourcing project.

But for CapEx, there’s an added challenge: Many of these categories lack historic baselines, fall outside of the procurement team’s area of

expertise, or are sourced using archaic means.

2 Focus on Total Cost of Ownership, Cost Reduction, and ROI

STEP

+$ +

How your purchases impact quality, cash flow, and down-the-road expenses, such as repairs and depreciation, can end up being the most critical factors when judging the overall success of your purchasing decisions.

For many sourcing professionals, this can be a major shift in mindset — but focusing on the total cost of ownership (TCO) and how purchases truly impact the bottom line enables procurement teams to drive stronger, more sustainable bottom-line benefits.

To start the shift to a TCO-focused procurement strategy,

think about the factors that dictate TCO – such as customer

and employee satisfaction, training, implementation and

maintenance costs, performance problems, or disposal – and

build them into your e-sourcing process.

customer satisfaction

employee satisfaction

trai

nin

g

implementationdis

pos

al

performance problems

TCO

3 Focus on Maintaining Improvements Long Term

STEP

2014 2024

Once a purchasing decision has been made, the work is really just beginning. Now you need to ensure that the costs reductions secured are sustained over the long term.

2024

Establish contract management processes to ensure that agreed upon terms are continually met.

Manage the contract renewal processes to ensure that the savings are extended.

Measure and track supplier performance and risk to ensure that bottom-line benefits are sustained.

How do you lock in your savings?

12

3

With the right long-term strategy and processes, procurement can drive improvements that are stronger — and more tangible — than ever.

For many businesses, procurement transformation is an ambitious undertaking. For more information on

how your procurement team can have a larger impact on your company’s valuation, contact us at

info@intesource.com or 800.445.2200 .