Companies are moving beyond reverse auctions as they are not delivering sustainable value, primarily due to their focus on price over other essential negotiation factors. Advanced negotiation tools now allow for more flexibility in supplier requirements, enabling companies to negotiate based on best value and to incorporate business constraints effectively. Ultimately, this shift leads to improved supplier relationships and sustainable savings, with companies achieving better overall results in their sourcing strategies.

1. An Emptoris White Pa p er
Moving Beyond Reverse Auctions
for Scalable, Sustainable Value
Emptoris, Inc.
www.emptoris.com AN-9/05

2. - - © 2001 - 2008 Emptoris, Inc.
Executive Summary����������������������������������������������������������������������������������������������������������������������������3
Why Are Companies Moving Beyond Reverse Auctions?���������������������������������������������������������������5
Sub-Optimal as a Sole Negotiation Strategy����������������������������������������������������������������������������������������������������������5
Not Delivering Sustainable Savings���������������������������������������������������������������������������������������������������������������������������6
Harming Supplier Relationships����������������������������������������������������������������������������������������������������������������������������������7
How Are Companies Realizing Sustainable Value? ������������������������������������������������������������������������8
Flexible Requirements�����������������������������������������������������������������������������������������������������������������������������������������������������9
Expressive Supplier Bidding������������������������������������������������������������������������������������������������������������������������������������������9
Supplier Ratings�������������������������������������������������������������������������������������������������������������������������������������������������������������� 10
Business Constraints ����������������������������������������������������������������������������������������������������������������������������������������������������� 11
Optimization-Based Bid Analysis������������������������������������������������������������������������������������������������������������������������������ 11
Optimization-Based Supplier Bid Recommendations�������������������������������������������������������������������������������������� 12
How Are Companies Realizing Value At Scale?������������������������������������������������������������������������������14
Conclusion����������������������������������������������������������������������������������������������������������������������������������������15
About Emptoris��������������������������������������������������������������������������������������������������������������������������������16
Table of Contents

3. - - © 2001 - 2008 Emptoris, Inc.
The reverse auction can have a significant impact when initially used in enterprise sourcing and has
driven hundreds of millions of dollars to companies’bottom-lines. It increases price transparency
in the market and thereby competition. However, by focusing on price, it constrains the supplier to
competing solely on that dimension.The buying company misses the opportunity to consider other
elements on which a supplier might compete. Moreover, it limits the buyer’s ability to incorporate
business constraints and policies into the decision-making process.
As a result, companies are finding that the reverse auction cannot deliver sustainable value.Yet, they
are faced with significant commitments for cost reduction that must be met to remain competitive and
meet market expectations.
Companies are stepping back from the one-size fits-all application of the reverse auction to their
sourcing negotiations. Leveraging more advanced tools, companies are able to specify more flexible
requirements that create more dimensions on which suppliers can compete and express their
differentiation.They evaluate these factors in combination with non-price factors such as supplier
performance ratings and business constraints using optimization-based decision-support tools.
With a singular focus on price, reverse auctions are not delivering sustainable value.
As a result, companies are moving beyond the reverse auction, negotiating for
best value, and delivering sustainable value year over year.
Need for Sustainability Drives Companies Beyond the Reverse Auction
Sustainability
Beyond Reverse
Auction
Reverse Auction
Fixed
Requirements
Price-Based
Supplier Bids
Negotiate for
Lowest Price
Flexible
Requirements
Expressive
Supplier Bids
Negotiate for
Best Value
Business
Constraints
Supplier
Ratings
With a singular focus on price, reverse auctions are not delivering sustainable value.
As a result, companies are moving beyond the reverse auction, negotiating for
best value, and delivering sustainable value year over year.
Need for Sustainability Drives Companies Beyond the Reverse Auction
Sustainability
Beyond Reverse
Auction
Reverse Auction
Fixed
Requirements
Price-Based
Supplier Bids
Negotiate for
Lowest Price
Flexible
Requirements
Expressive
Supplier Bids
Negotiate for
Best Value
Business
Constraints
Supplier
Ratings
Executive Summary

4. - - © 2001 - 2008 Emptoris, Inc.
Put in the hands of every buyer in an enterprise, these tools can generate the sustainable value
companies need to stay competitive, and companies today are using them to generate sustainable
savings of 7% in categories repeatedly sourced year after year. Overall, companies are seeing a
number of key benefits:
• Sourcing faster—completing negotiations in weeks instead of months and with fewer
resources
• Gaining price transparency at the item level
• Leveraging supplier innovation and not just squeezing supplier margins
• Addressing more categories of spend, enterprise-wide
• Basing award decisions on best value drivers, not just lowest price
• Realizing greater savings—typically $700K on $10,000K in spend

5. - - © 2001 - 2008 Emptoris, Inc.
Auctions increase price transparency in any market, and with the advent of online auctions, many
companies embraced them as a driver of tremendous savings in their sourcing process. In an auction,
companies precisely specify their requirements and suppliers bid against one another for the business.
It has not been without short-term benefits. Companies have saved hundreds of millions of dollars
using online auctions, often in categories where they thought they had already achieved substantial
savings and rock-bottom prices through traditional negotiations.Thus, the online auction has been an
eye-opener regarding the potential for additional savings.With that awareness, increased expectations
have also come.
Committed to substantial annual savings targets, procurement teams are trying to repeat their initial
success. However, after a few rounds of auctions, the additional savings are not there.This is driving
companies to move beyond the reverse auction, as they realize it is:
• Sub-optimal as a sole negotiation strategy
• Not delivering sustainable savings
• Harming supplier relationships
Sub-Optimal as a Sole Negotiation Strategy
The reverse auction is a price-based negotiation tool, but companies need to factor a number of
other criteria into their sourcing decisions. Product quality, payment terms, delivery terms, and
historical supplier performance are just a few among many. And, lately with a scarcity in many
commodity markets, assurance of supply can become an even more important criterion than price.
Moreover, according to A.T. Kearney, leading companies that focus on reducing total procurement
costs—and not just price paid—enjoy a cost advantage of more than $60 million for every $1 billion
in revenue.
In addition to considering other elements of a supplier’s bid and offer, buyers must also consider
business constraints under which their company operates. Some of these are driven by corporate
strategy and regulations—for example, ensuring that a certain percentage of suppliers are minority
or women owned businesses (MWOB) or are local to the country in which the company is operating.
There are also constraints designed to manage risk—for example, ensuring the company has
multiple sources of supply for critical items or has suppliers who are located relatively close to its
plants and offices.
Not only is consideration of these types of constraints outside the scope of an auction, it requires
considerable number crunching and modeling to try to factor these additional criteria into decision-
making. At best, companies will invest weeks to identify a sourcing award allocation without any
certainty that it is the best allocation. More likely, they often do not have time to consider these
constraints at all.
Why Are Companies Moving Beyond Reverse Auctions?

6. - - © 2001 - 2008 Emptoris, Inc.
Despite the importance of these additional factors, the availability of online auction tools has driven
many companies’sourcing strategies in recent years, making price the primary point of competition
among suppliers and the primary decision driver for buyers.This has led to sub-optimal strategies
and results in many cases. In practice this process should work the other way around, with the
sourcing strategy driving the selection of tools. In some cases, for example in a highly competitive
market for a wholly-commoditized item, the reverse auction may in fact be the right tool. Or, it may
factor in as a component of a multi-stage negotiation.The important point is that the strategy drives
the selection of tools to ensure they aptly address all the variables and constraints at hand.
Not Delivering Sustainable Savings
In addition to losing tremendous value by relying heavily on price-based negotiations, companies
are also finding that after a few rounds of reverse auctions there are no additional savings to be had
with that approach.They’ve squeezed all the excess fat out of the market, and they’ve done so at the
expense of their suppliers’margins.
With pre-determined lots and a singular focus on price, auctions implicitly follow a“buyer knows
best”approach.Whereas suppliers are often better able to determine the best lots and bids
(incorporating bundles, volume, and quantity discounts) based on their better understanding of their
own internal efficiencies and costs.Without this flexibility, suppliers cannot express any competitive
advantage they may bring to the market. Instead, they must compete on the exact terms specified
by the buyer and find squeezing margin is their only source of advantage.
Many companies have let the availability of online sourcing tools drive their sourcing
strategy, when in fact letting the strategy drive the selection of the negotiation
tool leads to the best value.
Reverse Auction Availability Has Driven Sourcing Strategy
Reverse Auction
Sourcing Strategy
Sub-optimal results
Sourcing Strategy
Negotiation Tool
Best Value
Many companies have let the availability of online sourcing tools drive their sourcing
strategy, when in fact letting the strategy drive the selection of the negotiation
tool leads to the best value.
Reverse Auction Availability Has Driven Sourcing Strategy
Reverse Auction
Sourcing Strategy
Sub-optimal results
Sourcing Strategy
Negotiation Tool
Best Value

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Harming Supplier Relationships
Over time, this can harm supplier relationships. As noted in a report from The Center for Advanced
Purchasing Studies,“acceptance of [reverse auctions] has not been without controversy because…its
process is contradictory to the long-term benefits associated with collaborative/cooperative buyer-
supplier alliances.This perceived conflict is primarily caused by the tool’s emphasis on awarding
business based on aggressive price competition…instead of
long-term total cost of ownership (TCO) considerations.”1
Moreover, with increases in many commodity prices and
shortfalls of supply, suppliers recently have greater leverage
in negotiations and buyers need to collaborate with them
more to find the value. Overall, as companies look for
the next wave of savings to meet this year’s corporate
objectives, they find that the savings just are not there.
“The lion’s share of savings doesn’t come from auctions or
competitive bidding techniques. Supplier collaboration is
where the long-term money is,”says Pierre Mitchell, head of
e-procurement at the analyst firm The Hackett Group.2
Or, putting it more bluntly,Tim Minahan of the AberdeenGroup notes that“the initial phase of
sourcing automation (e-sourcing) was the equivalent of liposuction creating highly efficient and
transparent markets that allowed buyers to remove the‘fat’from supply markets.”3
Having run its
course, all the excess fat has been taken out of the market, and it’s now time for companies to put on
their running shoes and put some real muscle into their sourcing process.
“The initial phase of sourcing
automation (e-sourcing) was
the equivalent of corporate
liposuction creating highly
efficient and transparent
markets that allowed buyers
to remove the‘fat’ from supply
markets.”
Tim Minahan
AberdeenGroup
1
CAPS Research.“The Role of Reverse Auctions In Strategic Sourcing.”April 2003.
2
Malcolm Wheatley. “Beyond Reverse Auctions.”CPO Agenda. Spring 2005.
3
AberdeenGroup. “Intelligent Sourcing: Advanced Sourcing Methods for Value-Based Supply Relationship.”September 2004.

8. - - © 2001 - 2008 Emptoris, Inc.
To overcome these challenges and move away from the price-based decision-making put forth via
the auction approach, companies are leveraging advanced negotiation approaches that take the
data crunching out of the decision-making process and empower buyers to focus on developing the
right sourcing strategy and building relationships with their suppliers.To empower buyers to make
the best award allocation there are six key elements of a best-in-class approach:
• Flexible requirements
• Expressive supplier bids
• Supplier ratings
• Business constraints
• Optimization-based bid analysis
• Optimization-based supplier bid recommendations
How Are Companies Realizing Sustainable Value?

9. - - © 2001 - 2008 Emptoris, Inc.
Flexible Requirements
To provide real value, advanced negotiation approaches must incorporate a flexible, extensible
bidding model that allows buyers to define their requirements in a way that does not constrain
suppliers or prevent them from bringing their innovation and preferences to light during the
negotiation. For example, a buyer may stay away from fixed quantities, allowing suppliers to bid
based on the quantities they are best suited to provide. Or, the buyer may allow different quality
grades to be specified and then determine which grades to purchase in which quantities based on
the suppliers’capabilities.
Negotiation Approach
Negotiation Factors Reverse Auction Beyond Reverse Auction
Price Variable Variable
Quantity Fixed Variable
Quality Fixed Variable
Payment Terms Fixed Variable
Contract Terms Fixed Variable
In a reverse auction, only price is variable. Moving beyond the reverse auction,
companies are expressing their requirements more flexibly to expand
the dimensions along which suppliers compete.
Flexible Requirements Expands the Scope of the Negotiation
The model must also be extensible to empower the buyer to factor in all the elements that drive
best value. By putting this power directly in the hands of the buyer, companies are able to source
and model all categories of spend enterprise-wide. Buyers are able to model the unique cost drivers
for their category and business gaining the incremental value of advanced negotiation approaches
across all enterprise spend. So, be it shipping, hotel accommodations, electronic components,
or simply office supplies, any and every category can be sourced using advanced optimization
approaches.
Expressive Supplier Bidding
Given a flexible bidding model as established by the buyer, suppliers must be empowered to express
their preferred bids.To reveal their competitive advantage, they should be able to offer discounts and
bundled pricing, and flexibly address other non-price factors such as quantity, item specifications,
delivery terms, etc. As a result, the buyer will have better insight into the supplier’s capabilities and
be able to better leverage their innovation, all without simply squeezing margins.This not only
provides better value but also improves the supplier relationship via better collaboration.
Reverse auctions, in contrast, limit collaboration by requiring an apples-to-apples comparison across
suppliers.This forces buyers to predefine requirements and bundles.In the example below,using the
reverse auction,a buyer sourcing a high-quality ingredient at low volume finds that suppliers are

10. - 10 - © 2001 - 2008 Emptoris, Inc.
only willing to provide it at a very high price due to the low volume. However, leveraging expressive
supplier bidding, the buyer allows suppliers to structure their bids into the bundles that better
match their cost structures. And, in this example, given the opportunity to bundle the low-volume
high-quality ingredient with a large-volume lesser-quality ingredient, suppliers are willing to provide
the high-quality ingredient at a lower price.
Using a reverse auction, a company would never have discovered this potential cost savings because
it would have locked suppliers into placing bids on a set of pre-defined requirements.
Supplier Ratings
Supplier ratings are another element that when factored into decision-making can improve a buyer’s
ability to negotiate for best value. Supplier ratings may address quality, performance, service, or
financial condition. Performance, for example, could include an on-time delivery score, or it may
include a composite key performance indicator (KPI) related to service responsiveness as determined
by a survey of individuals who work with the supplier. Ratings can also incorporate publicly available
metrics about the supplier or ratings specific to the supplier’s relationship with the buying company
based on information from production systems.
With reverse auctions, suppliers are limited to bidding on lots pre-defined
by the buyer. Freed from this constraint, they may express alternate
bundles that the buyer may not have considered and that they can
offer more cost-effectively.
Reverse Auctions Miss Opportunities for Savings
Bids for high-
quality ingredient
Bids for lesser-
quality ingredient
Supplier Defined
Bundled bid
Reverse Auction Beyond Reverse Auction
BidPrice
Time
Reverse
auction
price
premium
With reverse auctions, suppliers are limited to bidding on lots pre-defined
by the buyer. Freed from this constraint, they may express alternate
bundles that the buyer may not have considered and that they can
offer more cost-effectively.
Reverse Auctions Miss Opportunities for Savings
Bids for high-
quality ingredient
Bids for lesser-
quality ingredient
Supplier Defined
Bundled bid
Reverse Auction Beyond Reverse Auction
BidPrice
Time
Reverse
auction
price
premium

11. - 11 - © 2001 - 2008 Emptoris, Inc.
Factoring in performance ratings gives buyers a better view into
the total cost of ownership (TCO) of various sourcing scenarios.
Business Constraints
Buyers also typically have to consider business constraints,
purchasing policies, and priorities in their decision.Typically
these are designed to mitigate risk or support business strategy.
For example, a company may want to control the minimum or
maximum suppliers for a given category or item.To reduce supply
risk, a buyer may want to ensure at least two suppliers for a critical
item. Or, to keep the administrative costs of doing business low,
they may restrict the maximum number of suppliers with whom
they do business.
Companies may also limit the volume of an award that goes to a
new supplier to reduce exposure, or guarantee an allocation of
some portion of the award to a preferred vendor or a minority- or
woman-owned business. Geographic considerations may also need
to be factored into decisions to meet, for example, local-content
requirements or ensure proximity between supplier and point
of use.
Optimization-Based Bid Analysis
With a flexible bidding model, expressive supplier bids, supplier
ratings, and business constraints, evaluating different bids becomes
increasingly complex. Optimization techniques, however, employ
sophisticated algorithms to identify the best award solution.Thus,
having defined their total cost model (incorporating price and non-
price factors) and having identified any business constraints, the
buyer is in virtual real-time provided with the award allocation that
provides the best value.
Tight integration between the bidding mechanism and the
optimization is critical to empowering the buyer with real-time
analysis across every dimension of competition and all line items.
Optimization is not a single step at the end of the negotiation
process. Being able to leverage it in real-time—multiple times
during the course of a negotiation—enables buyers to provide
feedback to suppliers and make adjustments in the negotiation
when warranted based on the incoming bids.
What Is Optimization?
Optimization is the practice of finding
the best possible solution to a problem in
which there are a number of competing or
conflicting considerations.Within the area
of sourcing, it is the only approach that
allows buyers to simultaneously evaluate the
complete range of variables and constraints
that impact sourcing decisions to identify
the best possible sourcing decision.In other
words, optimization is the only technology
that can look at the“whole”problem,
including all of the interdependent variables
concurrently, before recommending the
optimal solution.
It is important to note, however, that
some solutions use the term“optimized”
or“optimization”but do not incorporate
the comprehensive and sophisticated
algorithms used in bona-fide optimization
systems.These pseudo-optimized systems
rely on simple ranking methods for bid
analysis.The process of ranking bids and/or
suppliers limits bid analysis to looking at
isolated factors, whereas true optimization
incorporates rankings as part of a global
analysis that simultaneously looks at all items,
suppliers, bids, and business constraints.

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In the following example, using optimization to factor in supplier-suggested bundles and business
volume discounts, a company realized 7% additional savings. In a category that had already been
through multiple rounds of reverse auctions and was thought to be squeezed dry of savings, that’s
a substantial breakthrough and a source of incremental value of the buying company. Factoring in
supplier performance and business constraints leads to even greater value.
This sourcing example is illustrative of results commonly achieved
across a wide range of categories, such as temp labor, electronic parts, or
computer equipment. With flexible up-front requirements that allowed
suppliers to express their preferred bundles, this company leveraged
optimization to review bids including business volume discounts and a
variety of different bundling options, as expressed by the suppliers.
$3,400
$3,350
$3,300
$3,250
$3,200
$3,150
$3,100
$3,050
$3,000
$2,950
$3,367
$3,212
$3,138 $3,131
Savings
of 7%
Reverse
auction
award
Award with
business volume
discounts
Award with
bundling
Award with
bundling and
business volume
discounts
TotalCostofAward($000)
Savings Example Using Optimization
Given the ease and speed of creating and evaluating scenarios using optimization, buyers can
create multiple“what-if”scenarios to conduct cost-benefit comparisons among various business
constraints. For example, the cost of reducing the supply base of a critical item from five to two
suppliers can now be quantified and factored into the decision-making process. Overall, optimization
gives buyers the confidence to know they are making the right sourcing decisions.
Optimization-Based Supplier Bid Recommendations
This level of confidence can also be extended to suppliers by empowering them with optimization-
based feedback that recommends alternate pricing and bundling scenarios based on the
overall negotiation dynamics and competitive bids.This benefits suppliers by providing them
with additional insight into how they might bid more competitively, in ways they may not have
considered. And, it benefits the buyer by introducing additional competition, which is not solely

13. - 13 - © 2001 - 2008 Emptoris, Inc.
price-based, into the negotiation. Like expressive supplier
bidding, this creates a more collaborative negotiation that is
more likely to capture the value of supplier innovation. Like
the optimization-based bid analysis leveraged by the buyer,
this also occurs in real-time during the course of a negotiation.
What To Look for in a Solution4
The following are key components to look for in a
solution that can empower a company to move
beyond the reverse auction.
Integrated workflow that supports the
buyer and the suppliers and reduces
the workload during the multistage
negotiation process, beginning with an
RFx, moving to an auction, and finishing
with award analysis.
Multiple online negotiation formats
(reverse auction, online competitive
bidding, multistage negotiation, one-on-
one negotiation).
The ability to manage many line items (for
example, over 10,000 items), hundreds of
suppliers, and complex pricing formulas
that factor in the costs of doing business
with a supplier in a single negotiation.
Expressive supplier bidding, in which
suppliers submit bids consisting of
price and other such attributes as
quantity, quality, discounts, and delivery
requirements to give the buyer beneficial
options.
Online feedback to suppliers showing
how competitive their offers are (at the
item level and overall) and suggesting
bidding strategies to win more business,
and the integration of optimization with
this capability to support near real-time
automated feedback
Optimization-based bid analysis that is
tightly integrated into the negotiation
workflow, making it possible for any buyer
in any negotiation of any category to
identify the lowest total cost of ownership
(all costs associated with the procuring
and using a material or service, including
costs for parts, poor quality, logistics,
inventory, resources, and ordering).
Business-constraint modeling that
enables trade-off analysis of different
purchasing strategies based on such
constraints as supplier count, capacity,
delivery requirements, and performance
requirements.
Support for evaluating suppliers based
on criteria using complex formulas for
analyzing total cost of ownership and
optimization-based bid analysis that
factor in cost drivers, supplier capabilities,
supplier capacity, supplier performance,
and multiple forms of supplier discounts.
User-friendliness, especially for suppliers,
giving them bidding flexibility, smooth
data importing and exporting, and
improved reporting.
The ability to integrate the software with
existing internal systems to move data
quickly into and out of the system.
4
“Reinventing the Supplier Negotiation Process at Motorola.”Interfaces.Vol. 35. No. 1. January-
February 2005.
In addition to supporting a buyer’s bid analysis, optimization can
be applied to provide real-time feedback recommending alternate
pricing and bundling scenarios based on the overall negotiation
dynamics and competitive bids. Companies today are integrating
this into multi-stage negotiation strategies:
STAGE 1: An RFI is run to get input from suppliers on additional
cost elements which are then incorporated into a total
cost model.
STAGE 2: An initial RFQ event is conducted without expressive
supplier bidding or providing supplier bid
recommendations.This stage gathers supplier bid
information on buyer-defined packages
STAGE 3: Suppliers are empowered to bid expressively
and supported with optimization-based bid
recommendations in what is often called a“dynamic”
RFQ since its terms and configurations may change
based on innovative bidding strategies suppliers bring
to the table.
Optimization Empowers Buyers and Suppliers
RFI
Stage 1
RFQ
Stage 2
“Dynamic”
RFQ
Stage 3

14. - 14 - © 2001 - 2008 Emptoris, Inc.
Many companies have applied the five elements above to specific categories or components of their
spend. Often, they have done so by leveraging consultants at considerable cost.While they may
realize significant value from these engagements, the model doesn’t scale to drive sizable impact—
impact that noticeably hits the bottom- and top-lines and drives up earnings-per-share.
To realize benefits at that scale, leading companies are putting the power of optimization-based
bid-analysis in the hands of every buyer in their organization.This pays off quickly as incremental
value is realized across all categories of spend—indirect, MRO, and direct—enterprise-wide. In fact,
the AberdeenGroup notes that“companies with at least five advanced sourcing categories, and
the prerequisite capabilities, should consider a software-based approach.” They highlight how
H.J. Heinz has deployed“self-service advanced negotiation and optimization tools to each buyer’s
desktop so advanced techniques are leveraged on 40% of all e-sourcing projects.”This has resulted
in“continuous, sustainable savings of 7% on categories repeatedly e-sourced, some as much as six
times in as many years.”5
Compared with reverse auctions, advanced negotiations go a long way towards providing better
value. Many companies report realizing additional savings, relative to those achieved via the auction
approach, of 5% or more using advanced negotiation. And, that does not even represent the auxiliary
benefits such as improved supplier relationships, risk mitigation, and better alignment between
business and sourcing strategy achieved by factoring in non-price factors and business constraints.
Of course, technology is just one part of a solution and
most companies take a phased approach to the adoption
of advanced negotiation techniques.They often start with
key categories and buying groups to incorporate and
develop best practice processes that empower them to
realize the full value of the approach. Armed with initial
successes, they conduct a broader knowledge transfer
through which best practices are infused across the
buying organization.
Continuous, sustainable
savings of 7% on categories
repeatedly e-sourced, some as
much as six times in as many
years
5
AberdeenGroup.“Success Strategies in Advanced Sourcing and Negotiation.”June 2005.
How Are Companies Realizing Value At Scale?

15. - 15 - © 2001 - 2008 Emptoris, Inc.15
The hey-day of reverse auctions is waning as they are not delivering the sustainable savings
companies need to stay competitive.While there is a place for reverse auctions within the context
of a larger sourcing strategy, companies are moving away from the one-size fits all approach in
which reverse auctions were automatically used for many sourcing negotiations.Taking a more
nuanced approach, companies are specifying their requirements flexibly and allowing suppliers to
bid expressively. In combination with supplier performance factors and business constraints, bids are
evaluated using optimization-based decision support that enables companies to negotiate for best
value, not just price.
Extending this capability broadly throughout an organization and empowering individual buyers
with it, companies are able to achieve sustainable savings at significant scale.They can begin to
address every category of spend enterprise-wide with these advanced techniques and are realizing
consistent savings of 7% year after year. Moving beyond the reverse auction, companies are able
address their sourcing more holistically and realize the best value from their supply base.
If you have comments on this white paper or would like to discuss any of its points, please contact us
at 781-993-9212 or at whitepapers@emptoris.com.
If you would like to discuss how the Emptoris Sourcing and Optimization solutions can help
your company move beyond reverse auctions, please contact us at 781-993-9212 or at
info@emptoris.com.
Conclusion

16. - 16 - © 2001 - 2008 Emptoris, Inc.
About Emptoris
Emptoris is a world leader in innovative supply and contract management software solutions that
empower enterprises to realize best value and accelerate profitable growth. Emptoris solutions are
fused by successful Global 2000 companies in every industry. Customers include American Express,
Boeing, ConocoPhillips, GlaxoSmithKline, Kraft, Motorola, Owens Corning, Syngenta, and Vodafone.

17. For more information
about Emptoris, visit:
www.emptoris.com,
call 1.781.993.9212, or
email sales@emptoris.com.
Emptoris, Inc.
200 Wheeler Road, Burlington, MA 01803
tel 781-993-9212 • fax 781-993-9213 • www.emptoris.com
© 2001 - 2008 Emptoris, Inc.