Today’s business landscape is changing at an astronomical rate. Companies that cannot adapt to sudden market fluctuations or changes in the supply chain will not survive in the current competitive climate. e-Sourcing provides leverage for businesses that want a more efficient method for saving money and establishing long-term business relationships in the procurement process. Below are some of the features and benefits of E-Sourcing software and how it can benefit any business that wants to save money on services and goods.
Spend Analysis
e-Sourcing software contains a built-in accounting feature that provides reverse-auction resourcing information and increases visibility into your spending. For instance, if you have two suppliers who are offering the same product, an e-Sourcing system can give you valuable data and updates on which supplier you need to choose for your next purchase. Important data could include:
• Identifying purchasing trends
• Market conditions that affect the cost of goods and services
• Necessary information to negotiate favorable terms with suppliers
• Opportunities to save money
• Supplier strategies
Supply Chain Management
Without a proper system in place to monitor the supply chain between your company and your suppliers, you’ll waste time and lose money when securing inventory for your business. e-Sourcing RFID applications can help you manage product supply chains through production, distribution, and all the way to your doorstep. Accessing the information can instantly improve the accuracy and timeliness of product data. Thus, you always have the right amount of inventory coming into your business when you need it. e-Sourcing software gives you a more accurate long-range tracking solution so that you can manage the supply chain more effectively.
RFQ Sourcing and Bidding
One of the biggest hassles of sourcing and bidding for products is communicating with the suppliers. Traditional methods for RFQ sourcing, such as emails and Excel spreadsheets, are no longer efficient. The ever-shifting dynamic in the global marketplace calls for faster means of product procurement through e-Sourcing software. This technology can support all RFQ and RFI formats while updating you on the chain supply and changes that can occur in the bidding process. e-Sourcing can help you in the following ways:
• Cost breakdown and analysis during bidding
• Integration with all other systems or process you utilize
• Updates on new suppliers and product bids
• Customizable reporting that is fine-tuned to your business model
• Comprehensive data that allows you to make decisions in a more timely manner
• Current comparative analysis of multiple suppliers
Faster Negotiations and Requisitions
An integrated e-Sourcing system allows you to turn a bid into a contract or requisition in just a few clicks. It saves your previous orders, so that you don’t have to keep inserting information. You update the new order and send the contract or bid on its way. This feature comes in handy when your negotiating a price for significant amounts of inventory and then need to adjust the price of your company’s catalog. You can negotiate prices with your suppliers at a much faster rate and close deals within hours instead of days.
Reverse Auction
In a reverse auction, the seller is the bidder. The buyer has the opportunity to choose from a wide range of bidders across the country or worldwide. With e-Sourcing software, you’ll have access to a broader range of companies who are all supplying the same products. You have more freedom to choose the right company while saving you money with the best deal. If savings is not the primary concern, you’ll also have the ability to see other options such as supply rates, distribution dates, inventory, and other factors that help you make the best financial decisions.
Contract Management
e-Sourcing software allows you to manage contracts from multiple suppliers or the same supplier. The software can run a wide array of data reports so that you can negotiate any deal efficiently. For instance, if you are getting ready to renew a contract with a company, the software will generate financial reports on past agreements so that you can decide if the renewal is beneficial to your company. You can also see when your contracts are expiring or determine if you want to enter into a contract with a new company. e-Sourcing software allows you to make decisions by giving you up-to-date information efficiently and accurately.
Improve Business Partnerships
One of the greatest benefits of e-Sourcing technology is that it fosters improved transparency and communication between a buyer and a seller. It provides a direct portal through which your company can view purchasing and saving opportunities from a range of suppliers. You can look at supplier statuses, deadlines, company distribution data, as well as product pricing and availability — all from the same sourcing system. You can also interact with suppliers from various locations. This type of transparency and ongoing communication will help you strengthen working relationships that will only grow over time.
Whether you are launching a startup or growing an established corporation, e-Sourcing software can give you the edge you need in the supply chain between your company and your suppliers. An e-Sourcing system can save you money, cut down on negotiation and contract development times, and open opportunities for you to procure products as you need them. Quite simply, if you are not using e-Sourcing software in the marketplace, then your competition is — and leaving you behind.
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