When we purchase goods and services, we use a process that has either been taught to us or developed by us from experience with the goal of getting the best value. While the best value process is often effective on a day-to-day basis, it usually fails to consider a business’s long-term needs and commercial objectives.
As a result, procurement’s objective is to provide longer-term strategic value to the business that will assist it in achieving its commercial objectives. As part of this, it participates in every phase of the process, from sourcing goods and services to managing contracts and suppliers. While purchasing is tactical, procurement is strategic.
There needs to be a greater degree of transparency and control over the purchasing process in order to deliver more strategic value. By being sustainable, diverse, innovative, or simply financially competitive, this will lead to a competitive advantage. There will be a long list, and it will differ from company to company, depending on their priorities.
An easy-to-follow sourcing policy and process and keeping track of every step of the process can deliver procurement goals through sourcing.
By enabling users to specify clear sourcing criteria, and by inviting suppliers to respond directly into the system, eSourcing software simplifies this process even further to ensure that best value is delivered. This allows the responses to be easily evaluated and compared before the business is awarded.
With an eSourcing system, you can reduce the amount of time and effort spent on finding historical information by eliminating the need to recreate the process every time. It ensures consistency in the way suppliers are engaged. Because of the savings it generates, the ROI (Return-on-Investment) is transparent, typically between 10 and 20%, depending on the business, the industry and country.
In terms of software solutions, there are many available and each will have its own merits based on the specific requirements. oboloo is one e-Sourcing solution that has been specifically designed for SMEs. It’s a simple and intuitive solution that integrates contract, supplier, and savings management to enable companies to be supplier smart. To learn more, go to www.oboloo.com.