What is eSourcing?
Simply defined, eSourcing is a set of digital technologies that assist in the streamlining, simplification, and improvement of strategic sourcing operations and Procurement procedures performed by an organization’s Procurement team. By monitoring ALL expenditure and ALL suppliers, minimising supply chain risk, and boosting savings, eSourcing systems increase Procurement’s capacity to deliver value for the business.
This allows businesses to keep track of their suppliers more easily and gives greater visibility into your procurement activities.
How Does eSourcing Work?
eSourcing works by deploying cloud-based technologies to host and manage your procurement activities. It is intended to simplify these procedures, make choices based on data, and make your teams more successful and efficient in their duties. These eSourcing steps include identifying and qualifying vendors, bidding, selecting one or more suppliers, and contracting to purchase goods or services.
eSourcing process steps are:
- Determining purchase contract specifications and requirements
- Creating and distributing RFI questionnaires, RFPs, or RFQs to suppliers
- Centrally storing all eSourcing documents sent and received through online portal
- Pre-qualifying suppliers
- Holding eAuctions, if applicable
- Reviewing competitive bids from qualified suppliers
- Performing analysis and vendor evaluation
- Negotiating with suppliers and checking references
- Communicating with suppliers under consideration through the portal
- Selecting supplier(s) for contract award or purchase
- Creating contracts
- Sending contracts or purchase orders to winning suppliers
- Reviewing automated spend analysis by vendor and purchase category
- Maintaining supply chain and supplier relationship management
- Conducting post-contract vendor evaluation
How is “Sourcing” different from “eSourcing”?
Sourcing and eSourcing aren’t all that different on the surface. Procurement specialists in both circumstances are attempting to find the greatest goods from the best suppliers at the best price and terms. The key difference between Sourcing and eSourcing lies in the tools used to execute both day to day and strategic sourcing activities.
Traditional sourcing methods like as email, phones, spreadsheets, PDFs, and even faxes impede efficient communication with internal and external stakeholders and suppliers. These tools, in addition to limiting cooperation, limit transparency, uniformity, size, and automation. All of these components are necessary for efficient eSourcing:
ELIT.ai’s eSourcing software solution will open up channels of communication between your business and its suppliers by establishing a direct link and encouraging activities such as bids, purchase orders, and emails. Sourcing automation saves money and allows for a faster return on investment!
ELIT.ai’s easy-to-use eSourcing solution allows simple and complex sourcing effortlessly. Its advanced features reduces sourcing cycle time, and provides better visibility into savings and control on TCO.
ELIT.ai offers substantial benefits to the organizations digital journey
Supplier management is a process that refers to an organisation that works as a Buyer and manages supplier information, interactions, relationships, and performance. It also paves the way for complete transparency into the interactions, information, and continuous performance of a whole supplier database.
ELIT.ai’s E-Procurement services are a complete end-to-end procedure that your company will go through when sourcing and identifying services or goods. It will provide visibility into your organization’s spending.
Also, data can be shared between ERP and e-sourcing software solutions in real-time. This gives overall visibility of the supplier’s transactions.
Manual work is streamlined and thus easier to check for errors. Along with this, an efficient e-procurement platform also makes sure that past orders get referenced, meaning there’s a greater chance that your company can compare orders to ensure new ones are correct.
Benefits of using eSourcing
- Timely actions on all requirements
- Huge savings of Time in coordinating with requisitioners
- Significant reduction in lead time to convert PR to Order
- Elimination of risk of stock out
- Availability of time to strategize negotiations
- Improves trust between suppliers and develops relationships
ELIT.ai eSourcing Key Features
Some of the things to look for in eSourcing software include:
ELIT.ai. This includes the ability to manage all parts of your typical RFI or RFP, including questionnaires and pricing templates.
Reverse auction capabilities. Reverse auctions help purchasers to reduce buying prices through greater competition and avoid having to negotiate with several suppliers individually. Auctions can help potential purchasers by expediting the bidding process, enhancing transparency, and ensuring compliance between the Buyer and Suppliers involved.
Furthermore, adopting the reverse auction bidding model to source products or services can result in considerable cost reductions, bringing bottom line value to your entire procurement budget.
If your company is considering incorporating e-Auctions into its entire strategic sourcing process, online cloud hosted software like the one supplied by ELIT can give large ROI with minimal investment.
Templates for RFP/RFI/RFQs. ELIT eRfx is an all-in-one online RFP/RFI/RFQ lifecycle management system. This solution has enhanced capabilities that assist organisations in creating and tracking the status of the eRfx document. This system, based on open architectural principles, may be effortlessly linked with various business application platforms such as ERP, sourcing platforms, and so on. It allows for comprehensive iteration tracking, customisable workflows for quicker decision making, auto evaluation and scoring of supplier responses, insightful dashboards, and time and effort reduction.
Real-time response for strategic sourcing. Having real-time response within a single platform to ease the process in making purchase decisions is an advantage in and of itself, but it is not the only one. Purchase procedures and activities are more efficient, and user productivity is higher. It helps in risk reduction, cost savings, and increased innovation.
Supplier evaluation and comparison. ELIT Software is designed to assist in managing vendor relationships with confidence, measuring performance against KPI indicators, and identifying areas for improvement. It has a simple and easy-to-use dashboard that displays real-time supplier metrics. The supplier registration and onboarding procedure is simplified by standardised templates that speed the supplier onboarding process.
- Enables you to avoid contract penalties and fines thanks to automated notification alerts.
- Features cosmopolitan multi-lingual and multi-currency functionalities that simplify international supplier management.
- Monitors vendor spending and identifies optimization opportunities to help reduce costs and increase contract value.
- Can be easily integrate with third-party enterprise resource platforms like SAP, Oracle and more.
- One-click conversion of multiple PR line items to RFQ
- Auto Selection of Source list
- DashBoard reflecting the status of every PR/ Line item in the transaction
- Facility to include PR to ongoing RFQ
- Ease of converting PR to Order based on historical rates
- Flexi price builder for complex sourcing.
- Scalable events for sourcing more in less time.
- Configurable templates and user roles.
- Intuitive supply side portal access.
- Multi configuration settings in eAuction – Bid Display, Tie Prevention & Minimum Bid Decrement.
- Multi-round negotiation support in both simple and complex categories.
- Ability to handle large-scale sourcing projects with increased stakeholder participation.
- It can be seamlessly integrated with any existing ERP or SCM systems including SAP, Oracle, or any other industry standard business planning solutions.
ELIT.ai eSourcing has collaborative scoring and approval workflows based on various business policies of an organization to give a hassle free sourcing experience.