We have already seen, in this blog, that e-sourcing is the ideal tool to handle the key issue of procurement areas: reducing the total cost of purchase. It’s an on-line platform that allows companies to complete the procurement process using the best negotiation practices for each supply category.
See below the 6 benefits of using this platform:
1- Reduced prices
By automating and expanding competition among suppliers, e-sourcing allows you to significantly reduce the prices offered. The on-line platforms optimize those negotiation processes which were previously complex and exhausting, generating better quotations, with less effort.
2- Time saving
With the use of e-sourcing, quotations are faster, as everything is done on-line and in an automated way. But not just that! The process of supplier evaluation and certification becomes faster too, since information is made available in an organized and standardized way.
3- Higher assertiveness in proposals
It’s known that when suppliers send proposals that are inadequate or lack some required information, the procurement team will certainly lose time. The on-line platform provides quick access to data delivery and reception, making also the work of supplier companies more practical.
4- Increased transparency
In a conventional price quotation process, it’s common that a supplier probes his competitors. After all, he doesn’t know if there are or not other companies participating in the same bid process.
With e-sourcing, it’s clear that there is competition from the outset, and that there will be negotiations with other supply sources. Both suppliers and buyers are more comfortable working in partnership, focusing on the success of the procurement process.
5- Outsourcing of procurement activities
There is no doubt that outsourcing can be a great support for companies to improve productivity and decrease costs. By using an e-sourcing platform, procurement teams can outsource many tasks and focus on the most strategic purchases for the business. And everything with less rework and higher excellence.
6- Creation of a database
Few companies realize it on a daily basis, but having an accessible history of quotations and transactions is very helpful in the sector’s strategic decision-making. With the use of an e-sourcing platform, the procurement manager has a history of all purchases at his/her fingertips, with valuable data for the company.
How to choose an e-sourcing tool?
Currently, you can find different modes of e-sourcing platforms. The choice of the most appropriate solution for your company should consider certain factors, such as breadth of supplier market, procurement complexity, strategic importance of the product or service and its operational need.
Some platforms have more basic functionality. Therefore, if the company must make high effort for corporate procurement, it’s worth investing in a more robust tool, such as that offered by Mercadoe.
E-sourcing has become virtually mandatory for companies involved with strategic procurement, which must handle multiple suppliers and purchases. If you use e-sourcing already, what benefits did it bring to your company?