E-Sourcing: The Easiest Way to Transform Your Bottom Line
As today’s digital era continues to change how nearly every industry does business, the way companies manage their supply chain must adapt in tandem. Ever-changing markets and global pressures are raising the bar for procurement departments. Procurement processes must now be a competitive corporate advantage that drives a significant — and positive — financial impact.
To do so, those procurement processes are moving away from the paper-pushing days of infinite and difficult to track spreadsheets, emails, and pdfs. Procurement professionals are now enterprise-level decision makers responsible for shaping their businesses’ growth and future. As part of that responsibility, many are looking for ways to automate and digitize aspects of their supply chain. One such way is through e-sourcing software solutions.
E-sourcing software is quickly becoming procurement’s answer to staying innovative and agile in the e-business economy. Through streamlining workflows, enhancing flexibility, and increasing transparency, the benefits of e-sourcing allow businesses to transform their bottom lines quickly and efficiently.
Effective resource management
Many of the bottom line benefits are accrued through cost-reducing resource management. For example, by automating certain, more routine tasks, e-sourcing software frees up purchasing personnel to focus on more strategic business initiatives. Companies get the most out of their buying projects because less time and energy is required to manage larger spend amounts and more purchase transaction.
E-sourcing also allows for greater visibility into potential cost-saving measures. A full view of company purchasing can show procurement teams where they can benefit from a better arrangement with a supplier. The ability to manage company-wide sourcing from a single viewpoint also positions purchasing teams as a better strategic partner to the organization as a whole.
Overcoming internal hurdles
Internal hurdles can often prove to be one of the largest obstacles in the purchasing process. The level of transparency provided through an e-sourcing platform can help to expedite internal buy-in from other teams and departments. Single request portals can provide an even bigger benefit by allowing businesses to streamline and consolidate request data. A single, meaningful dashboard for users will also cut down on back-and-forth email traffic, as well as human-error in documents.
This level of transparency also encourages stakeholders to get involved in the purchasing process early in the planning. Having critical stakeholder buy in early on prevents last minute, and likely expensive, changes. It also increases accountability throughout the chain, allowing for end-to-end tracking of procurement event cycles and benchmarking, and reporting for future activities.
Externally, investing in an e-sourcing solution can provide a level of transparency in the buyer-seller relationship that will help to build stronger relationships with vendors for future partnerships. Both the supply and demand side can have the information they need readily available, as well as see an improved accuracy and efficiency throughout each step of the purchase process. This helps to better facilitate control and compliance needs, as well as encourage collaboration between the parties. The more informed negotiations are, the more likely each party will walk away happy and willing to work together again in the future.
To transform the bottom line of a company, business leaders must either create efficiencies or eliminate waste. E-sourcing allows procurements teams to do both. By streamlining workflows and simplifying spend processes, procurement teams can create more value for their businesses than ever before.
Alex Ayakubovich, Alex Ayakubovich, CEO, Scout RFP