Companies across the globe use sourcing to find the best sellers and increase savings. However, it’s no arguing the fact that traditional sourcing has several limitations, especially if the Procurement team has to manage multiple suppliers. At the core level, it can become challenging for a Procurement team to compare different sellers and make the right decisions. Not to mention, the sheer amount of emails and documents involved in traditional sourcing can easily result in unexpected blunders.
This is when e-sourcing software comes into the picture. If you’re not familiar with the concept; here’s what you need to know. To put it in simple words, e-sourcing is a process of using a single or multiple web-based tools to manage and compare multiple suppliers and choose the right products according to the buyer’s needs. Since e-sourcing applications have well-optimized algorithms, they reduce the odds of mistakes and increase the overall efficiency.
Read this guide to understand the top benefits of replacing your traditional sourcing practices with a fully functional e-sourcing application.
One of the major benefits of using e-sourcing software is high transparency. Unlike traditional sourcing, e-sourcing gives both suppliers and buyers an opportunity to find key information about each other.
For instance, buyers can check the detailed information of different supplier offers and also analyze their key information to compare them with each other. Moreover, the majority of e-sourcing tools have dedicated portals (with several fields) that suppliers can fill to share their tenders, deadlines, and delivery status. This reduces the scope for failure and enhances the overall efficiency.
Another potential benefit of using e-sourcing software is its time efficiency. A professional e-sourcing tool allows you to compare an extensive range of suppliers and their products in a comparatively short period.
With an e-sourcing tool, the Procurement teams don’t have to go through a tedious process to compare different tenders. Instead, they can use the software to run different comparisons and find the right contract more effectively. Even if you want to compare thousands of sellers, the e-sourcing tool will help you get the job done easily.
As opposed to conventional sourcing, e-sourcing relies on automation to gather RFx information and manage multiple suppliers. This reduces the manual effort from the Procurement team’s side and the suppliers still receive all the crucial alerts via push notifications. In addition to this, the e-sourcing application also compiles detailed reports automatically to calculate the sales and savings at the end of every month.
In today’s tech-savvy world, using e-sourcing software is the most efficient way to manage multiple suppliers and reduce the Procurement team’s manual efforts. As a result, you can expect an increase in savings while avoiding unexpected human errors at the same time. So, if you also want to maximize the efficiency of your organization’s Procurement efforts, make sure to use a dedicated e-sourcing application. If anything, this will help achieve your business objectives more effectively.