Reduce Capital Expenditures

November 15th, 2017

There’s more to eProcurement than indirect spend

 

Today’s post is by Dave Wenig, Vice President of Sales and Services at SafeSourcing.

Many of our clients find great success in significantly reducing their indirect spend. The typical expense categories that are sourced are always winners and are often the first categories that come to mind when selecting which categories will be sourced using eProcurement tools. As nearly all of our clients know from first-hand experience, these categories have earned this reputation for good reason. The average savings for Supply categories, for example is in excess of 21%. This is relatively well known and is only the start of what is truly possible with eProcurement.

What is less known, and too often overlooked, is that this same eProcurement methodology can very easily be applied to your capital expenditures. At a time when many of our clients are preparing for the coming year, I wanted to point out that you should not forget to leverage eProcurement for your capital expenditures.

At this point, you may well have a very clearly defined sourcing plan in the form of next year’s budget. My suggestion is simple – remember to review that identified spend with your eProcurement provider. You’ll be glad you did.

I would encourage you to also keep an open mind as you decide which of these capital expenses you would identify for eProcurement. You might be surprised to know that our clients have had success in areas where most clients don’t even consider. In one example, we were able to successfully take just one panel van out to market as an RFQ. Inside of days, the client saved many times more than could ever be saved negotiating with dealers using traditional methods. In another example, we achieved 30% savings on two towable generators.

Many of our clients, whether retailers or otherwise, will be working on construction such as opening new stores and remodeling old stores in the coming year. I propose all of that related spend should be sourced using eProcurement. If it is not competitively sourced, you will overpay. Before you build that new carwash, you should know that we do that too. Recently, we achieved over 10% savings on the building and over 34% savings on the installation portions alone for a client.

In this short post, I’ve listed only a few examples out of many, many more and I have not even mentioned your cost of goods or cost of sales. I hope, however, that my main premise was clear. If you have budgeted for capital expenses, you should consider eProcurement to reduce the cost of those expenses. You’ll likely find that you’re able to accomplish much more in the next year based on the savings generated by eProcurement.

For more information, please contact SafeSourcing.  

If you thought this page is useful to your friend, use this form to send.
Friend Email
Enter your message

7 Responses to “Reduce Capital Expenditures”

  1. Audrie Blehm says:

    Spot on with this write-up, I really feel this web site needs far more attention. I’ll probably be returning to read more, thanks for the info!

  2. An fascinating discussion is worth comment. I think that you need to write more on this matter, it won’t be a taboo subject however generally individuals are not sufficient to speak on such topics. To the next. Cheers

  3. I used to be suggested this blog by way of my cousin. I am not positive whether this put up is written by means of him as no one else understand such certain approximately my trouble. You are wonderful! Thank you!

  4. DreamProxies.com – 100 the best private proxies by means of large bargains + Excellent speedy procurator serrvers!

  5. Top level quality private proxies, Unlimited data transfer rate, 1000 mb/s superspeed, 99,9 uptime, Low step by step IP’s, Very little intake limits, An array of subnets, USA or possibly The uk proxies – Invest in At this time – DreamProxies.com

  6. Its like you learn my thoughts! You seem to grasp a lot approximately this, like you wrote the e book in it or something. I believe that you just could do with some percent to drive the message house a bit, however other than that, that is magnificent blog. A great read. I’ll certainly be back.

  7. Thanks a lot for providing individuals with an exceptionally memorable possiblity to check tips from this site. It really is very great plus jam-packed with fun for me and my office friends to visit the blog nearly thrice in a week to find out the fresh tips you have. And lastly, I’m just always impressed with your fantastic solutions served by you. Selected two areas in this posting are really the most impressive I’ve ever had.

Leave a Reply

You must be logged in to post a comment.