e-Sourcing enables firms to leverage purchasing in a number of value-adding ways. Three are of particular note: reduced sourcing costs, enhanced transparency, and data analytics. First let’s look at the financial benefits.
Reduced sourcing costs
e-Sourcing allows buyers to access a greater number of suppliers than was ever previously possible. These can be national or international suppliers. From the buyer’s perspective, more suppliers equals more choice; and more choice leads to more competitive bid prices and a wider range of product and service offerings from which to choose.
Astute use of e-sourcing thus helps firms to reduce their sourcing costs and improve their overall cost competitiveness. This has direct impacts on firm profitability. Moreover, e-sourcing can dramatically bring down the transaction costs associated with purchasing. Again, the net effect is a more competitive cost base.
How does SourceDogg enable cost cutting?
– Browse and search hundreds of thousands of verified suppliers in our global directory; pool and tag them according to certification, preferment, product category etc.; and easily invite them to your sourcing events. Increase competition and source better quality goods and services for less.
– Import all your existing suppliers in bulk with a quick and painless registration process – SourceDogg supplier accounts are free. Reduce administrative costs with effective requests for quotation, tender, information or proposal created in minutes and distributed to suppliers instantaneously. Clone top-performing requests and use our readymade, best practice request templates for even faster ROI.
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We’ll follow up next week with a look at the second way e-sourcing facilitates strategic purchasing: enhanced transparency.
Can’t wait? Read on by downloading our white paper, ‘5 steps to boardroom strategy and how e-sourcing can make it happen’.
