Why Use e-Sourcing Software?

Mordor Intelligence reports the global procurement software market size reached USD 9.82 billion in 2025 and is forecast to attain USD 15.75 billion by 2030, advancing at a 9.92% CAGR. Furthermore, the research states, “Demand accelerates as inflation and geopolitical shocks heighten the need for real-time spend control, while AI-powered automation replaces labor-intensive sourcing tasks that once limited scale.”

This rapid expansion is fueling interest from many businesses yet to invest in eSourcing software. 

As trends move towards the more widespread use of procurement software, companies must ask the question, should we be using eSourcing software as well?

This learning resource will cover the basics of eSourcing software and why it might be of use to your company and procurement teams.

Introduction to eSourcing Software 

E-sourcing software streamlines how organisations find, evaluate, and select suppliers, digitising the sourcing process to deliver faster, more transparent decision-making. By leveraging automation and AI-driven insights, it helps procurement teams compare vendors, assess value, and identify the best suppliers for any requirement.

It also strengthens supplier collaboration by using RFx tools and online eAuctions to gather detailed pricing, compliance, and quality data. The platform creates a transparent, competitive environment where suppliers can demonstrate their value, build stronger relationships, and compete fairly for your contracts.

Who is eSourcing Software For?

eSourcing software is for anyone who is running a tender. It’s for every business that requires any kind of procurement process to find and secure strong suppliers. Whether you’re a one-person sole trader business or a multinational corporation, if you rely on suppliers to help your business survive and thrive, then eSourcing software is of use to you. 

Within any business, eSourcing software is designed for a procurement team “ if one exists. If no procurement team exists within your organisation, due to lack of necessity, then eSourcing software is for whoever manages tenders. For example, buyers, office managers and marketing teams who are undertaking eSourcing activities in their role.

eSourcing software can be used to source anything that your business requires, from pens and paper, to machinery and services. 

Secure Better Investments with an RFx

There are three types of RFx (Requests For x). These are as follows.

• Requests for Information (RFIs) that request details about a business and their ability to serve as a supplier, which might include general supplier information through to compliance and pricing tables.
• Requests for Proposals (RFPs) whereby a business asks suppliers to produce a written proposal document that outlines how they’ll deliver services or goods. 
• Requests for Quotes (RFQs) that ask suppliers to provide quotes on pricing for specific jobs or goods.

All of these requests serve a purpose in your procurement process and can provide essential information that helps you determine the viability and validity of a contract bid or supplier. 

Any of the options for an RFx can be used either on their own or in conjunction as part of a wider process. For example, you may start with an RFI and then run an RFQ or if you are already comfortable with your suppliers and have a complex requirement, it might be just an RFP. 

eSourcing should allow for flexibility in the procurement process so the right elements of the software can be used to mirror what would happen in the workflow, with or without technology. This then allows for a smooth transition to eSourcing. Suppliers can be invited to any of the RFx types above which will ensure that a process is followed that captures the right information and allows for a final solution and outcome that will enhance your business. 

All the data is captured digitally in a centralised location which also makes it easier for the organisation to analyse results and decide on the best course of action. A RFx is also not necessarily the end of the process. You may also move onto a multi stage RFQ or even an eAuction.

Create eAuctions and Control Your Tenders 

eSourcing software can be used to create and manage eAuctions. 

eAuctions are online auctions that allow suppliers to bid on goods and services. You can invite your suppliers to the eAuction, establish the terms and allow them to bid against each other until a winner emerges.

When using eSourcing software to create and host eAuctions, the most commonly-used auction format is reverse auctions. Instead of bidding higher and higher prices until the item is won, suppliers bid increasingly lower prices until you reach the best price for your purchase.

Alternatively, suppliers can be evaluated based on specific criteria, such as lot structure or delivery times, as well as the best price.

Note it’s important that you define the winning parameters before you start the auction process. 

eAuctions give you high levels of control over your negotiation. You can control who bids, review their bids while the auction is active, amend timeframes of the auction and ensure everyone bidding is qualified and eligible to be involved. 

For suppliers, the bidding process is also incredibly transparent. For example, in a ranked eAuction, they can see their live bid, as well as how their bid ranks against their competitors, which in turn helps you achieve the best market price for your procurement activities. 

Market Dojo offers powerful, on-demand eSourcing and eProcurement tools to optimise your supply chain. Get in touch with our team and arrange your personalised demo