Why e-Sourcing Matters?

Over the years, e-Sourcing has become a key procurement tool allowing organizations to connect, filter and shortlist suppliers, irrespective of whether they are present at the same location or at the same time – often allowing category managers to secure better outcomes than from traditional negotiations. Overall increasing cost control and maximizing supplier competition, as well as creating a repository of sourcing information.

Sourcing repositories for the larger organization is extremely important as it provides a benchmark on historical award price fictions, thus allowing procurement professionals to institutionalize and manage their knowledge of the sourcing category in one place.

E-sourcing involves inviting potential suppliers to tender, collecting supplier information, running tender processes and holding e-Auctions, evaluation, and finally awarding contracts.

Simplified e-Sourcing process

Added benefits of e-Sourcing:
  • Cost-saving: Accessing a wider range of suppliers, and leveraging on e-Auction strategies, procurement professionals can gauge significant savings

  • Time-saving and boosting efficiency: e-Sourcing significantly speeds up the time it takes to award a contract. It does this by reducing the amount of time procurement professionals spend on the manual tendering process.
  • Leveraging supplier information: e-Sourcing improves transparency between buyers and suppliers. Suppliers can view all tender opportunities with project key point, status, and deadlines through supplier portals
  • Increasing compliance: with all procurement-related documents stored in one place and with real-time technology organization gain visibility of the entire history of sourcing events making audit and risk management simpler by digitally enable controls for compliance with auto transactional records and trails. Resulting in enhanced compliance and regulatory procedures, with a system transparently showing how and why a supplier was selected.

Source-to-pay solutions also can be integrated with ERP and finance systems that can help procurement departments improve visibility overspend. Thus, giving the procurement team flexibility to monitor their progress and track the compliance to company policy. Want to know more about sourcing? contact us.