eSourcing is the process of obtaining bids from different suppliers using a single online portal.Its is fast becoming a key procurement tool, allowing organisations to connect, screen and shortlist suppliers, irrespective of whether they are present at the same location or at the same time. This allows category managers to secure more favourable outcomes than the traditional forms of negotiations.
Benefits of eSourcing
There are many benefits of eSourcing include streamlining the sourcing process, price reduction by maximising supplier competition, and creating a bank of sourcing information.
Saving money is the main driver for using sourcing tool giving the user the ability to access a larger range of suppliers, and the different bidding approaches that systems facilitate can provide successful outcomes for buyers.
Esourcing systems have been proven to speed up procurement processes by reducing the time of a tender process and cutting the hours procurement managers spend on tendering.
In addition, the process efficiencies that these systems bring, reduces expenses for both buyers and sellers.
Esourcing increase transparency and openness between organisations and suppliers. The eSourcing systems provide a portal through which suppliers can see all opportunities from an organisation, with deadlines, their current statuses and the final outcomes.
The ability to interact through the system ensures fast and effective communication and feedback ensuring suppliers are always aware of the current situation.
Reducing the geographic boundaries, along with the clear publishing of tenders, allows suppliers to engage in more opportunities, brings the potential for organisations to develop relationships with suppliers whose size or proximity might have previously been a barrier.
Selecting an eSource provider
Creating a bank is invaluable within the procurement sector, it allows organisations with 10, 20 or fewer procurement professionals to institutionalise and manage their knowledge of the sourcing category in one place.
When selecting an eSourcing tool it is important to choose one which is easy to use and easy to understand. Within the eSourcing market there are both basic and advanced models available.
The most obvious features to look for are eSourcing tools which accept bids, gather supplier information and include the ability to import and export information in CSV format and Excel format, the ability to create the RFx itself using templates, and finally the ability to manage the eSourcing process workflow. Managing the workflow allows you to discover alternative award scenarios, encourage supplier flexibility when bidding and encouraging suppliers to be creative when bidding.
Basic or Advanced, that is the question?
With both basic and advanced options available, should a procurement team start basic or start as they mean to go on with the advance sourcing tool?
Esourcing tools used at Odesma are incredibly easy to use and offer all advanced features to carry out your bidding for your organisation. They encourage creativity and are innovative in their field. Want to hear more? Get in touch