eSourcing, sometimes referred to as electronic sourcing is the process a company uses to procure goods and services from suppliers with the ability to compare them side by side based on quoted pricing or capabilities in order to choose a preferred supplier based on data. This process is typically carried out on a digital procurement platform such as oboloo.
Newer cloud based procurement software’s are designed to be user-friendly and therefore allow companies to create eSourcing activities in minutes rather than hours or even days, generate savings based on live data and increase visibility of supplier performance.
eSourcing is a key part of the eProcurement process however it is also heavily reliant on other processes such as Supplier Management.. eSourcing is the process of finding, evaluating and deciding which supplier to collaborate with based on their responses to a tender. An eProcurement solution will gather supplier responses such as pricing and answers to questionnaires and will analyse the results in a user-friendly dashboard, offering users clear and accurate information directly from their suppliers.
1) Request for quotations (RFQ): The process wherein the buyer sends out forms to suppliers in the same industry, asking for the prices of their products or services and responses to specific questions. Questionnaires may also be known as pre-purchase questionnaires (PPQ) which are designed to access a supplier on their suitability to provide goods or services as well as establishing if the hold similar values to your own company’s.
Prior to cloud procurement technologies, companies had to manually create these documents on software’s like Microsoft Word or Excel and send them by email to suppliers one at a time. Chasing suppliers, collating their responses, transforming them into a standardised format and analysing their responses would normally take days or weeks.
2) Evaluating responses: The process where the buyers assess which of the suppliers’ proposals are viable for them. The software will consolidate all the returned information from the suppliers to make this is simpler.
3) Contract awarding and management: The supply deal is awarded to the successful supplier and contract terms agreed upon. The on-going management and monitoring of the supply can also be completed within the system.
Companies invest in e-Sourcing software because of the following benefits:
Today’s fast-paced world requires organisations to have the right tools to help make their work more efficient and effective. For the finance, procurement and purchasing teams of any company, having e-Sourcing software is a game changer that will benefit the whole organisation. Consider getting one for your team.
Do you need e-Sourcing software for more efficient work? oboloo is the smarter way to take control of your sourcing activities. Start your free trial today or book a free demo to see how this cloud-based sourcing program can help you. www.oboloo.com