While the benefits of eSourcing are evident to buyers, suppliers are wary about automating the procurement process. The fear comes from the assumption that any sort of automation is overwhelmingly biased in favor of the buyer.
However, eSourcing systems can also provide real-time dynamic feedback and promote strategic cooperation, making it a valuable tool for buyers and suppliers.
Here are five ways that eSourcing benefits both parties.
1. Maximizing Transparency
Most eSourcing solutions can provide real-time feedback via analytics tools and detailed ranking. This indicates that not only do buyers get a clear view of suppliers and their offerings, but suppliers also gain unparalleled competitive knowledge. Insight into the competition, such as bidding in reverse auctions, helps suppliers better understand their own pricing model.
2. Ensuring Fairness
eSourcing systems provide equal access to buyer data for all suppliers. This encourages fair play among all players and ensures everyone gets the same questions and replies. On the other hand, eliminating bias from the procurement process guarantees that purchasers receive the finest offers and alternatives from suppliers.
3. Building Trust
Buyers will begin by briefing several providers on the specifics of their requests. Following that, a supplier will make an offer to the buyer. Buyers will often disclose the pricing given by supplier A to supplier B to negotiate all supplier bids.
The entire procedure is time-consuming and tends to generate an unfriendly dynamic between buyers and sellers. While customers may get their ideal offers, suppliers may feel unfairly treated. This is not an ideal approach to establishing a professional relationship.
eSourcing can handle this task with ease. The market determines the price, and because it is public, it cannot be blamed on a single supplier or the buyer’s negotiating abilities.
4. Saving Time
The procurement procedure involves a lot of back and forth. Communications alone can waste hours, if not days, of an already hectic schedule. And that is before any negotiations. Allowing buyers and suppliers to use templates and communicate through a shared platform to all key parties may greatly simplify the process for everyone.
5. Creating Opportunities
eSourcing solutions significantly boost efficiency for buyers and are easy to use for suppliers. Once they understand how the system works, it will be easier for them to participate in bids for the firm and secure deals.
While fully adopting e-sourcing solutions will take some time and adjustments, the reality is that buyers and suppliers will significantly benefit from using such systems. All they need is access to a reliable e-sourcing provider that can offer the right solution for both parties. Luckily, that’s precisely what we do here at Penny. All you need to do is to contact us and let us seal the perfect partnership.