Today, sourcing takes a fraction of the time that it used to because of advanced technology that leads to automated processes and streamlined communications.
Sourcing has evolved from the traditional use of mail, fax, phone or email for submitting requests for information (RFI), requests for proposals (RFP) or request for quotes (RFQ). Compile and compare responses in minutes as opposed to days or even weeks that it used to. eSourcing, or electronic sourcing, does all the heavy lifting and saves time and money.
The RFx (RFI, RFP or RFQ) is distributed to pre-approved suppliers through a single platform where all suppliers will be asked the same questions, in the same format, at the same time. Consistency of the requested information maintains transparency and consistency within responses with each buyer.
The eSourcing tool enables the buyer to collect and analyze large amounts of data in a uniform and straight-forward way. The software qualifies and quantifies the responses, resulting in the ideal supplier being easier to identify and select. This increased efficiency amounts to overall savings as well as other operational improvements.
Time Savings
Scanmarket users report of up to 40% of their time saved over traditional paper-based sourcing. Long gone are the days of mailing, faxing or emailing information to various suppliers and buyers to find the best product for the best price.
Money Savings
Statistics show savings between 15% and 18% on average compared to current price. This illustrates the vast room for negotiation most suppliers have in their price tags.
Sourcing Process Transparency
All data and interactions are logged and easily accessible for future negotiations or for audit documentation. Everything is online meaning it is easily shared internally, making team-focused knowledge transfer easier. The digital paper trail is key.
Methodical Approach to Buyers
Only ask the necessary questions with the help of templates. This ensures non-critical information is not being evaluated and overcomplicating the process. Buyers are able to make the right decisions in half the time by streamlining the process, increasing efficiency and quality of work.
Supply Base Optimization
eSourcing makes supplier comparison and evaluation easier. One-to-one or one-to-few comparisons is much easier when your suppliers are already entered in your pre-approved supplier database. As the database grows, the software automates scoring and generates initiative pairings.
As the e-sourcing software industry continues to evolve, procurement leaders evolve as well. Don't get behind in your digital transformation journey.
