What is E-Sourcing and How Does it Work?

What is E-Sourcing and How Does it Work?Perhaps you have heard of the concept of E-sourcing… but what exactly is this option and how will it help your business? Let’s take a look into what e-sourcing is, so that you can decide whether or not this service will help to further the goals of your business.


What is Esourcing?

E-sourcing is a faster and more transparent way of conducting negotiations and facilitating tenders. It is founded on a web-based platform and it is designed to help you ensure smooth and clear communications. The web-based application will help to execute the buyer and seller procurement process, in order to make tendering more efficient.

e-sourcing

How Does it Work?

By moving the process online, e-sourcing helps to offer time savings and monetary savings – because the buyer will be able to re-use tender processes instead of having to create them anew each time. Also, businesses find that e-sourcing helps them to gain more visibility of the process, greater understanding and more control – so that they can more easily monitor procurement across teams, divisions and departments.

An E-sourcing platform is designed to be as intuitive and flexible as possible, so that there will not be a major need for ongoing training and support. EC Sourcing RFP software is a great example of this. The idea is to allow all aspects of the procurement process, from the definition of the requirements to the awarding of the contract, to be handled through one system.

What are the Advantages?

What are the benefits that a company will be able to enjoy when using E-sourcing? Here are a few of the advantages that this option can offer to your business.

Greater efficiency of processing – When E-sourcing is used, many of the repetitive, time consuming and labour intensive tasks associated with administration are eliminated. This includes evaluation, document distribution, etc. This means that there is less need for additional staff members and working hours spent on these tasks. Employees will be able to spend their time in more productive ways, such as landing better contracts in the future.

  • Cheaper overhead costs –  Companies that use an E-sourcing solution will find that they enjoy a great savings in overhead costs. There will be no expenditure needed for paper, copying, printing, postage and stationery.
  • Reducing the need for storage – All contract information and other documents will be stored electronically – which will eliminate the need for office space, archive storage, fire safes and much more.
  • Improved consistency – Instead of working with several different systems, having an E-sourcing solution in place will ensure that all buyers and evaluators are on the same page.
  • Very little need for training or ongoing support – Many of the modern E-Sourcing platforms are very flexible and intuitive, which means that they are easy to learn to use and that employees should not need ongoing support when using them.
  • Clearer knowledge of requirements – An E-sourcing system will allow a supplier to get a much clearer idea of the requirements, because the process will encourage the buyer to break down these requirements in a straightforward way. This allows for more transparent negotiation.
  • Faster process of evaluation – All of these features along with the ease of use of the system means that E-Sourcing will help to ensure that the evaluation process goes more smoothly.
  • Excellent customer support – A good E-sourcing service will offer your company additional customer support services, such as system management, a help desk, training, consultancy and much more. This ensures that the company will be making the most of their investment in the system.

Choosing an E-Sourcing Service

There are many different options out there when it comes to E-sourcing, so take the time to make sure that you are choosing the right option for your company. If you are considering a specific vendor, you should make sure to perform a reference check on them before you make your final decision. Also, take a close look at the data libraries, negotiation capabilities and user interfaces that they have to offer. Take your time and compare several different companies, so that you can find the one that fits the specific needs of your business. Don’t be afraid to ask questions, or to speak to the company about creating a custom-designed service that will be specifically crafted to your business.

About the Author

Jeremy is a blogger and freelance writer. He is interested in aspects of business, entrepreneurship and the economy.

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