e-Sourcing has become a key procurement tool, allowing companies to connect, screen 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.
What is e-Sourcing?
The Chartered Institute of Procurement and Supply define e-Sourcing as…
“the Sourcing process enabled with the appropriate web-enabled, collaborative technology to facilitate the full life-cycle of the procurement process for both buyers and suppliers.”
This often takes the form of dynamic negotiations, in real time, between a buyer and a group of pre qualified suppliers, each competing against each other to win the buyer, through the use of a B2B sourcing platform.
The reasons why e-sourcing has become so prevalent, is that, as in many other areas of online activity, the Internet brings suppliers and provider closer together, facilitating reduced costs, better communication and a more efficient process.
Whilst saving money is only one aspect of good procurement practice, it’s a main driver of e-Sourcing. The ability to access a broader range of suppliers, and the different bidding approaches that systems facilitate, can provide for incredibly successful outcomes for buyers – a recent e-Auction conducted by the UK Government delivered savings on mobile phones of over 59%.
e-Sourcing systems also speed up procurement processes – reducing the total time of a tender process and cutting the number of hours procurement managers spend on tendering – freeing up valuable time for them to focus on strategic activity.
In addition, the process efficiencies that these systems bring, reduces expenses for both buyers and sellers particularly in print and paper costs.
Improve Supplier Relations
E-Sourcing can bring huge improvements in transparency and openness between buyers and suppliers. The systems provide a portal through which suppliers can see all tender opportunities from a supplier, with deadlines, their current statuses and the final outcomes all clearly presented.
Interaction through the system ensures speedy communication and effective feedback – so suppliers are always be aware of the current situation.
The reduction in geographic boundaries e-sourcing facilitates, along with the clear publishing of tenders, allows suppliers to efficiently engage in more opportunities. This brings the potential for buyers to develop relationships with companies whose size or proximity might have previously been a barrier.
Improve compliance and reduce risk
The systematic approach of e-Sourcing processes provides companies with control over their tender processes and an audit path for compliance purposes.
SpringTide’s e-Sourcing experts work with both small and large companies around the world helping them to get the most from their systems.
If you’d like to find out more about the benefits you can get from an e-Sourcing solutions or want to get more from your existing software, speak to one of our specialists for a free consultation.
Contact us now on +44 (0) 7495 468488 or just fill in this form