Whether you’re a seasoned procurement professional or a beginner, you’re more than aware of the pressure to save time AND money. You want to reduce the cycle time of the sourcing process and expedite the final analysis without short-changing the results. At the same time, you wish to accelerate supplier negotiations without losing out on money.
You already know that saving money on goods or services is never enough. Your supervisor is always pushing you to save more. If it’s not your line manager, it’s the boss clamping down and insisting on organisation-wide reductions.
So, how do you overcome this pressure? That’s where eSourcing steps in.
In this article, you’ll explore ways on how eSourcing can help you save time and money.
According to Aberdeen research, eSourcing tools reduce requisition-to-order cycles by 66% and costs by 58%
eSourcing is an exceptionally powerful tool, empowering procurement and sales departments to speed up and streamline the full lifecycle of the procurement process. If you are yet to leverage this collaborative technology, here are the top 7 benefits of eSourcing that you should know:
1. Automation of Repetitive Tasks
One of the major ways eSourcing saves time is that it provides you with the capability to replicate the same, or comparable, tasks and repeat them in an automated way. You can copy analogous events and adapt them to a new situation repeatedly. This saves a lot of time as you don’t have to make a new draft each time.
Moreover, automating the administrative responsibilities of the sourcing and procurement process allows professionals to focus more on their strategy instead of labour-intensive customary tasks.
2. Bid Award Optimisation
eSourcing also saves time later in the process when it provides side-by-side comparisons after bidders save bids and replies. When suppliers place their bids, you can use an eSourcing tool to make a selection within a few hours rather than weeks. This makes dynamic eSourcing and auctions more efficient than the lengthy conventional negotiation done through email and Excel. Plus, it allows you to collect bids from more suppliers in less time, generating more competition and growing savings with lower bids.
Along with accepting bids, eSourcing software also helps with collecting supplier information and usually includes the capability to import and export information in CSV and Excel formats, to make the RFx itself using templates, and to administer the workflow of procurement processes.
3. Reduced Sourcing Cycle Time
By using the power of the internet and collaborative workflow technologies, eSourcing tools reduce the usual sourcing cycle times by more than 66% in the initial wave.
Additionally, these tools yield surprising incremental time savings in subsequent cycles. Upcoming eSourcing professionals have easy access to information and intelligence via the capture and warehousing of intellectual capital developed through the initial effort. Therefore, another eSourcing wave can occur in as little as 20% of the time needed by the first.
4. More Investment Opportunities
The time-efficiency of eSourcing tools can result in several different investment opportunities for the business. Some businesses might choose to turn this better efficiency into staff cutbacks.
Yet, we’re gradually seeing businesses opting to reinvest this time in introducing even more sourcing initiatives. As a result, they can compound the advantages. Just like compounding interest, the overall outcome of reinvesting this better efficiency has a substantial direct influence on the bottom line.
5. Sustained Savings
In a conventional sourcing setup, savings erode rapidly over time as contract compliance within the business is challenging to monitor and implement using manual approaches. Moreover, the knowledge base produced during the sourcing process is not captured and organised in a resourceful way for potential reuse. This makes it problematic and laborious to reproduce results.
On the other hand, eSourcing helps sustain the contracted savings by using tools to track outlay and compliance, to seize and distribute the information acquired during the sourcing initiative, and to help the purchasing community understand how to purchase using the contracts negotiated. The consistent approach of eSourcing gives businesses control over their request for bids and an audit trail to stay compliant.
6. Powerful Features
By using an eSourcing tool, you can shorten the sourcing cycle with supplier management, RFx templates, efficient order processing, and several other features. In the end, the procurement cycle is the time it takes to find the technology you require and at the rate you want. So, enhanced efficiency is going to save you time and money.
eSourcing enables procurement professionals to advance beyond negotiations and make improvements in the realm of data analysis and effective supplier management. Through improved transparency and openness between purchasers and suppliers, eSourcing tools also help you considerably enhance vendor relations. All this eventually translates into better productivity and more cost and time savings.
7. Efficient Tendering Process
By speeding up procurement processes, eSourcing tools reduce the total time of a tendering process and limit the time sourcing managers spend on tenders. As a result, they get more hours to concentrate on the strategic activity.
Also, these tools bring process productivities that decrease costs for both purchasers and sellers predominantly in print and paper expenditures.
The objective of an eSourcing tool is to centralise and automate the interactions between a company, its suppliers, and other stakeholders. eSourcing solutions enhance the speed and efficiency of procurement and spend management practices.
As eSourcing tools radically decrease cycle times, procurement experts can include more categories, making a much higher sourced spend. Eventually, the business that sources electronically is in a much better position to make the most of its procurement process and maximise results to the bottom line.
There are several eSourcing software available and our cloud-based tool, Market Dojo, leads the way by combining the simplicity of on-demand licensing with advanced enterprise capabilities Our customer-centric solution allows you to streamline procurement to get real value and diminish risk. This is accomplished through user-friendly, yet capable eSourcing and supplier engagement applications available on-demand or with enterprise licencing. Contact us now to learn more about our eSourcing software.