Implementing true e-Sourcing takes effort and the right technology, and there are a lot of cloud hosted applications in the market that offer to automate pieces of the e-Sourcing process. Some companies also offer the end-to-end e-Sourcing software.
Typical Steps in an e-Sourcing process
The process of e-Sourcing is a part of the e-Procurement process, and the typical steps in a source-to-pay process are highlighted in this video. To fully automate your Source-to-Pay process, it is essential to have an e-Sourcing solution that provides all the necessary modules in a single suite.
A typical purchasing process includes the following:
This is where the buyer decides what he/she is looking to purchase and estimates a budget for the purchase requirement. This purchase requirement is sent for approval
Request for Information (e-RFI)
The request for information process involves sending a detailed survey or questionnaire to a preliminary set of suppliers. The purpose of the RFI is to pre-qualify the suppliers to ensure that they meet the requirements of your Company and are able to deliver the product/service you are looking to procure.
Request For a Quote (e-RFQ)
The RFQ process is initiated by the Buyer once the RFI responses are received and suppliers shortlisted. The RFQ process involves sending the purchase requirements to the selected suppliers. Requirements generally include the list of items/services to be purchased along with detailed documentation/specifications, Quantity and other critical elements related to the purchase. Suppliers respond by providing a quote for your purchase requirements.
e-Auction (Reverse Auction)
e-Auctions are primarily used for price negotiation, an optional step after the RFQ process. Once you receive the preliminary quotes from your suppliers, you can further negotiate with each supplier to generate cost savings. The e-Auction process enables real-time price negotiation with your participating suppliers without the hassle of phone/email negotiations.
Award and Generate P.O
Once the RFQ or e-Auction is complete, you can select the winning vendor and award business. The award process includes generating and delivering a P.O. to the winning vendor.
Cloud hosted e-sourcing solutions such as the one provided by ProcurePort can also integrate with SAP, Ariba, Oracle, Microsoft and other third party ERP solutions to generate the P.O directly into your existing ERP solution.