This document discusses how companies can improve their valuation through the use of eAuctions. It provides three ways to employ eAuctions to boost valuation: 1) Focus on sourcing both operational (OpEx) and capital (CapEx) expenditures, as both can significantly impact profitability. E-sourcing CapEx alone can lead to 50% or more in cost reductions and secure millions in savings. 2) Focus on total cost of ownership, cost reduction, and ROI when making purchases by considering factors like quality, cash flow, repairs and more. 3) Ensure cost reductions from eAuctions are sustained long-term through contract management, renewal processes, and supplier performance tracking. Implementing these strategies can result in stronger and

1. Improve Your Company’s Valuation
with eAuctions

2. eAuctions are more than a simple
tool for securing savings and
processes efficiencies. eAuctions...
Improve customer satisfaction
Drive new revenue
Unlock working capital
Strengthen your company’s brand

3. 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.

4. 1 Focus on Sourcing Both
Operational (OpEx) and
Capital (CapEx) Expenditures
STEP
O$pEx + C$apEx

5. 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.
OpEx CapEx
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.
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.
50%
COST REDUCTIONS

6. 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.
A strong and knowledgeable sourcing partner can provide
the extra experience and resources to effectively run a
CapEx e-sourcing project.

7. 2 Focus on Total Cost of
Ownership, Cost Reduction,
and ROI
STEP
+
$
+

8. 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.

9. 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.

10. 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.
performance problems TCO
customer
training
employee satisfaction
implementation
disposal
satisfaction

11. 3 Focus on Maintaining
Improvements Long Term
STEP
2014 2024

12. 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

13. How do you lock in your savings?
1
Establish contract management processes to
ensure that agreed upon terms are continually met.
2
Manage the contract renewal processes to ensure
that the savings are extended.
3
Measure and track supplier performance and risk
to ensure that bottom-line benefits are sustained.

14. 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 .