These days most suppliers know their way around an e-Procurement tool. e-Procurement streamlines all processes for everyone, no matter which side of the deal they are on. It simply makes things more efficient and connects everyone across the same platform for ease of communication and reference. e-Sourcing is one of the more important aspects of e-Procurement. In short, it is the process of using web-based systems to collect and collate data about multiple suppliers. With that data, a buyer can make an informed purchasing decision. e-Sourcing technology assists businesses to generate savings, increase transparency and streamline processes and functions. If you’re reading this, you probably understand the importance of strategic sourcing, but are you taking advantage of the best sourcing tools for procurement?
How does e-Sourcing work?
e-Sourcing encompasses the entire purchasing process from:
- inviting potential suppliers to tender
- requesting and collecting supplier information
- bid management process, and/or holding eAuctions
- analysis of responses
- finally, awarding suppliers with a contract and managing the deal to completion
There are three main procurement sourcing tools that are must-have solutions to take your strategic sourcing to the next level. After all, without technological assistance in this digital world, can we really call sourcing strategic?
Must-have sourcing tools for procurement
e-RFX is one of the most common acronyms in procurement profession, but it doesn’t actually stand for just one thing; it is a general term for a range of acronyms referencing a request for information of some kind. Request for (RF) Information, Bid (B), Quote (Q) or Proposal (P), or the generic any of the above (X). e-RFX software helps you to manage all these requests and the responses in a consolidated, easily referenced and comparable format. Historically, RFX would result in a response of disparate data in a range of formats and necessitate physical storage and a lot of man hours to extract the relevant information. Optimization of the strategic sourcing process and minimizing paperwork and administration is always a welcome benefit to your procurement teams, and your bottom-line.
Reverse online auctions enable real-time, dynamic bidding between suppliers. The creation of a competitive marketplace drives efficiency and transparency, which leads to downward pressure on prices. The resulting cost savings can have far-reaching knock-on effects for your business, your suppliers and, in fact, the entire supply chain. e-Auction software with the right functionality and customizability can help your organisation realize cost savings of between 18% and 40%, depending on area of spend. Not too shabby.
3. Contract management
Contract management software provides a single electronic repository for all documentation. Removes many of the aspects of physical risk to paper-based contract management, and automation decreases the risk of human error that comes into play when multiple stakeholders have contact with contract generation and fulfillment. Keeping track of supplier data, trends and performance can be the key to establishing long, healthy, mutually beneficial buyer-vendor relationships.
What sourcing tools for procurement does ProcurePort provide?
ProcurePort’s suite of best-in-class eProcurement solutions includes a range of strategic sourcing software and services that can take your e-Sourcing capabilities to the next level. Strategic sourcing is about more than cost savings. The benefits of investment in e-sourcing include: Real-time collaboration with suppliers and internal stakeholders both in the office and in the field. A consolidated data repository with in-built alert functionality that ensures you aren’t missing a contract that is due to renewal and are keeping you up-to-date with supplier performance. Reverse auction technology enables your business to source the best deals in the most transparent and efficient way possible, for you and your vendors. The possibilities for enhancing your procurement processes are limitless.
To discuss how ProcurePort’s range of sourcing tools for procurement can help power your procurement, contact us to talk about your current processes and hopes for the future.