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It’s no secret that businesses are always on the lookout for improving their operational processes to increase profitability. The emergence of eSourcing has led to a paradigm shift in the ways a business functions and deals with stakeholders.

What is eSourcing?

Simply speaking, eSourcing is the use of web-based technology to ease up the procurement process for both the suppliers and buyers. It is a completely online bidding process that allows a buyer to bring all interested suppliers into one single platform.

Here we will look into the distinct advantages a business can achieve by shifting into an effective eSourcing system-

It can reduce operational cost

Saving in operational cost is the primary advantage associated with eSourcing. In this system, the business gets access to a much wider range of suppliers. Also, it can employ different bidding approaches which can help the business to bring down the procurement cost.

Moreover, eSouring speeds up the entire procurement process. Thanks to eSourcing, the managers can afford to complete the tendering process in less time and can focus adequately on strategic activities that demand more importance. sSourcing significantly reduces the paper and printing costs associated with traditional procurement processes as well.

It can save by improving supplier relationships

eSourcing facilitates the much-needed transparency in the procurement process and thus, improves the ‘buyer-supplier relationship’.  By participating in eSourcing procedures, both the buyers and suppliers can have a better understanding of the culture, mission, vision and values of one another. This helps both parties to determine whether to enter into business deals with each other or not. The overall improvement in the buyer-supplier relationship can bring savings for both businesses.

 eSourcing saves time and time is money

By shifting to eSourcing, businesses can save the time required to find new suppliers. As thousands of suppliers are registered on to an eSourcing system, businesses can easily attract global suppliers and in a less costly manner. With features like request prototypes and reusable e-requests, the search formalities are shortened considerably. The feature of pre-designed standard reports minimizes the need for creating heaps of documents and also reduces manual intervention. Thus, with eSourcing, a business becomes able to find the right suppliers at the right time, at the right price.

Automated evaluation process

eSourcing makes automation of the ‘response evaluation system’ possible, which is so critical for an efficient procurement process. The business no longer needs to resort to additional evaluation exercises which can be so costly and time-consuming at times. The eSourcing portal can be used to evaluate all the technical, commercial or pricing aspects related to your requirement and all these can be obtained by just a clicking a button in the portal.

The Bottom line: Participating in eSourcing allows both the buyers and suppliers to understand the competition better and to create a competitive intelligence. This provides all the stakeholders with a clearer framework about how to approach the market with their services/goods. All these can be done in a manner that is highly cost-effective and that saves a lot of time for the business concerned.

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