How Does E-Sourcing Work in the Supply Chain

e-sourcing in supply chain

When you study the supply chain, you examine the entire procedure from start to end. But, procurement is only a minor component of the supply chain. You must essentially collaborate with suppliers and internal stakeholders to procure and obtain products and services in time for manufacturing. You need to source materials that are the best match for the business.

That’s where sourcing, specifically e-sourcing, comes in. Read on to learn about how esourcing can improve the supply chain process.

Photo by Kelly Sikkema on Unsplash 

eSourcing Software

Using eSourcing solutions can help you improve your relationships with your suppliers while selecting better suppliers. This tool is a minor but critical component of the entire sourcing process.

There are several advantages to eSourcing, as there are to e-procurement. Using eSourcing tools cuts expenses, saves time and increases productivity. It also provides precise supplier data to aid you in making a more informed choice and helps maintain compliance.

Managing Risk

Whether you are currently transitioning to a digital format or are already utilizing E-procurement tools, strategies for minimizing procurement risks are critical. Procurement managers believe that contract management is one of the most high-risk stages of the supply chain process.

It’s always wise to incorporate service-level agreements and similar factors from the sourcing stage into the contract. Plus, risk assignment clearly lets every party know the level of risk they’re involved in.

It is always critical to examine risks as they arise and to monitor each risk regularly. Using the right esourcing solution can improve analytics accuracy during the process.

eAuction

eSourcing includes eAuction. Using eAuction tools for procurement could be extremely helpful. It may help you streamline your process, interact with various suppliers, choose the best bid, improve your earning power, and save money and time.

The procurement process is moving forward more quickly and smoothly, which is essential for both buyers and sellers. Traditional negotiations are substantially slower than reverse auctions. Regular negotiations typically last a few weeks, but online auctions usually conclude in 3 to 8 hours.

All paperwork and interactions by mail, fax, as well as discussions via numerous rounds of bidding are removed. The decision is made with a single mouse click, and discussions are completed in one working day.

Bottom Line

Despite what most business owners think, finding and using the right e-sourcing solution isn’t that hard. All they need is a reliable e-sourcing partner that can tailor the solution to their needs and goals. Luckily, that’s precisely what we do here at Penny. We offer a wide range of affordable e-sourcing solutions to help companies advance their market share in different industries. Just contact us, and let’s get going!

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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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