In today’s volatile global markets, procurement organisations must be nimble and find ways to make workflows easier, faster and more efficient. Tendering or sourcing is one workflow that is both time- and resource-intensive due to inefficient manual processes and tools. Fortunately, new eSourcing software is able to help procurement run more tenders in a fraction of the time and achieve the results you need.
What is eSourcing?
eSourcing has been around for quite some time, but many procurement professionals still aren’t familiar with this technology. In simple terms, eSourcing is the process of obtaining bids from different suppliers via a single online portal. 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.”
Think of eSouring as software or internet-enabled applications and tools that facilitate interactions between buyers and suppliers through the use of online tender negotiations and auctions.
eSourcing provides procurement with many benefits including:
- Reduce costs and increase buying power
- Save time (up to 85%) analysing quotations
- Improve operational efficiencies via automated processes
- Stimulate market rivalry and leverage existing supplier relationships
- Enforce compliance and mitigate risks
- Make informed decisions quickly
When should you use eSourcing?
If you have a procurement function, you should already be sourcing electronically as a strategic advantage. But if this is not the case, the tipping point for most procurement organisations include:
- Better pricing is required
- Total spend justifies the investment
- The team needs one consistent process
- Quick access to accurate data for reporting and decision making
- The need to grow supplier list and manage them more effectively
- Transparency and auditability
What are the first steps to getting started?
Here are a few things you should do before implementing eSourcing:
- Outline the specific objectives you want to achieve from eSourcing technology
- Get your team onboard and ensure they’re ready and capable to go to the next phase
- Nominate eSourcing champion(s) within procurement
- Articulate the benefits and develop an eSourcing strategy (see example below)
- Socialise the plan across the organisation and get one or more stakeholders on board as influencers
- Do your homework and research providers and competitive offerings – begin by learning more about eSource by triSaaS and schedule an online demo!
What’s stopping you?
eSourcing simplifies the tendering processes you already have in place. With a few clicks of the button, even the most complex tenders can be completed in minutes. Imagine the money that you gain or save if you could do dozens of tenders with better outcomes in the time it takes you now to run a single tender. But unfortunately, there are procurement teams that resist moving to eSourcing for various reasons including:
- Fear of getting it wrong
- Overhead to implement software
- Perception that level of process change required is too great
- Stakeholder resistance/inertia
- Lack of budget
- Fear of exposure
The good news is that every procurement organisation can start out sourcing electronically by testing one or two categories and gradually adding on as the comfort level increases – so the risk is minimal. Typically, the barrier to entry is low (triSaaS offers several pricing options that require little to no upfront costs), and any investment can be recovered in a single event.
Today’s businesses must embrace eSourcing as the foundation to build a strategic procurement function that delivers tangible value. Only with highly accurate data can procurement managers negotiate better deals and share outcomes with stakeholders. The results will speak for themselves.
Our customers have reduced year on year costs by 13% on average by removing the tedious manual processes and taking positive actions that help buyers drive bottom-line savings.
What are your next steps?
Simply schedule a free online demo to see our eSource solution in action. Or if want to experience our software first hand, register for a free 60 day trial (just click on triTender and complete the brief form) – there’s no risk or obligation whatsoever. Either one you choose, we’re sure you’ll agree that eSourcing will make your life easier and provide significant benefits to your business.