E-Sourcing Tools Definition
An electronic sourcing tool is a piece of software that helps organizations find and assess suppliers, request quotes, and manage the sourcing process. E-sourcing tools can be used for a variety of procurements, including direct and indirect spend.
E-sourcing platforms provide a central place for all sourcing activity and make it easier to find and compare suppliers. Many e-sourcing tools also offer features such as reverse auctions and contract management.
Reverse auctions are a type of e-sourcing event in which suppliers compete against each other to win a contract by offering the lowest price. This type of auction can be used for a variety of procurement categories, including commodities, transportation, and professional services.
Contract management features in e-sourcing tools help organizations keep track of supplier contracts, performance metrics, and compliance issues. These features can help ensure that contracts are renewed on time and that both parties are adhering to the terms of the agreement.
